22 September 2016

Media Release

Tasman in Strong Financial Position

Tasman’s annual wrap-up of its finances and achievements confirms the Council’s strong financial performance continues, with net debt reduced from $141 million in 2015 to $129 million at the end of June 2016.

The current debt is $44 million less than the $173 million forecast in the Tasman District Council’s Annual Plan 2015-2016. The Council also recorded an underlying operational surplus of $13.2 million.

Tasman Mayor Richard Kempthorne said the Council’s strong balance sheet means it is in a good position to retire more debt, continue to rebuild the emergency fund, carry funding forward for projects that were delayed this year, and deliver lower rate increases than forecast in future years.

The Council today received its Annual Report for 2016. Mayor Kempthorne said the current Council was pleased to have the opportunity to reflect on the financial achievements of the past year.

The Council will formally adopt the report once technical amendments relating to Nelson Airport’s accounts have been made and receive Audit NZ clearance.

Mayor Kempthorne said the numbers in the Annual Report were the result of significant operational savings, increased forestry revenue, less spending needed on emergency works and disaster clean-ups, delays to some capital works and higher debt repayment. Population growth, low inflation and low interest rates had also contributed.

“This is a great result, and it’s one that ratepayers will reap the benefits of in coming years – whether through reduced rates demands, debt repayment, continuing to rebuild our emergency fund or increased spending on community infrastructure and facilities.”

It is likely the Council’s debt will continue to track well below the level anticipated in the Long Term Plan 2015-2025, Mayor Kempthorne said.

The Council spent $26.9 million on capital works projects over the year, including the Golden Bay Community Recreation Facility, Motueka Wastewater Treatment Plant upgrade, Saxton Velodrome and design plans for the Richmond Central infrastructure upgrades (which includes the Queen Street upgrade).

ENDS

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