Media Release
26 September 2013

Positive Annual Report Adopted by Tasman District Council

The Tasman District Council adopted its Annual Report for the 2012-13 year today recording a net accounting surplus of $12.8 million, prior to asset valuation movements.

“Combined with a Working Capital position of $2.3 million, an underlying operating surplus of $293,000, and Equity, or net worth, valued at $1.185 billion at 30 June 2013 the Council is in a secure financial position”, said Chief Executive Lindsay McKenzie

This result was strongly influenced by a number of extraordinary transactions and events during the year, including on the positive side;

• An unrealised gain of $4 million on Council’s interest rate swaps,

• Higher subsidies from NZTA and the recoveries for River Z works,

• The completion of the Industrial Water Users dispute resulting in additional water charges income to Council

• Development Contributions were higher than budget due to high growth levels

• Higher income for the Cycleway project, and

• The Council’s share of associates’ income - the Port and Airport - was higher than budget.

However these positive events were balanced by increased costs associated with;

• Unbudgeted emergency works expenditure,

• Legal expenses were significantly above budget

• Reparation work at Jackett Island and the Motueka Groyne, and

• The Council’s contribution to the Ministry for the Environment’s Mapua decontamination work.
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The Council’s debt at 30 June, $158million, was just under budget.

“This positive financial result and the recently announced Standard & Poors rating provides a level of confidence about the future. We can now focus the planned review of our financial strategy which has begun.”

“The results of the review will be discussed and decisions made as part of the Long Term Plan in 2015. Until that time we will be applying an increased level of vigilance and probity to our financial management.”

“The Annual Report is not just about the numbers, however and in the full report to be released within the next month we will be measuring the progress we have made against the plans we agreed to last year. The report is a reflection of the undertakings we made as a Council when the citizens of Tasman were rated for”, said Mr McKenzie.

ENDS

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