Financial headwinds as cost rise

Waipā District Council is bracing itself for financial headwinds in the wake of high inflation, soaring interest costs, and a need to fund more depreciation.

In presenting the 2022-23 Annual Report for adoption at this week’s council meeting, deputy chief executive Ken Morris said the council had realised a surplus of $1.1 million for the year, which was significantly less than the $45 million budgeted and also well down on the $31 million for the previous financial year.

“Over recent years we have experienced quite considerable growth in our district which has contributed to a strong surplus but this year our growth-related income is significantly down, and our costs have escalated,” he said.

There was likely to be continued pressures for the short-to-medium term as the council looked to its current budget for the 2023/24 year and developing its Long Term Plan for the next 10 years.

While there was not likely to be an immediate consequence for ratepayers, continued inflationary pressure would mean that some costs would eventually need to be passed on to the ratepayer and that would mean increases in rates.

“Our infrastructure is in good shape, and we continue to have plenty of headroom for planned and prudent borrowing,” said Mr Morris.

“Our balance sheet is also strong with $2.5 billion in assets.”

Highlights for the year included:

• Attended 40 events on our Community Spatial Plan and received 2000 pieces of feedback
• Completed skatepark developments in Te Awamutu and Cambridge
• Began developing the 2024-34 Long Term Plan
• Began the urban mobility network with design work underway for Cambridge and Kihikihi pathways
• Started building 10 housing for the elderly units in Cambridge
• Actioned a transition programme with the new Cambridge Town Hall Community Trust
• Reviewed our Waste Minimisation and Management Plan and began planning for a food waste service
• Made significant progress on Cambridge Connections – Our future transport plan business case.

“This year has certainly produced an interesting set of financial statements, which reflects what has been a pretty tough year,” said Mr Morris.

“As our mind now turns to our next Long Term Plan, we’re going to have to rethink some of our plans and reprioritise some others in an attempt to balance what we can afford with ensuring Waipā District remains a great place to live.”