Punctual KDC annual report shows $10.6M loss

The Kaipara District Council has adopted its Annual Report for the 2011/2012 financial year. 

Chairman of Commissioners John Robertson said it was pleasing to see the annual accounts delivered on time.

“The financial challenges ahead are daunting but clear,” he said. “We need to stabilise the council so we can begin to resolve some major issues with urgency. We also need to look very closely at the Long Term Plan to ensure it’s financially sustainable. That will be our focus for the next few months.”

Commissioners have already established an Audit and Risk Committee to overview finances and contracts and establish rules around expenditure.

“We are determined to get to a balanced budget. Already, we have ended the practice of borrowing to cover day-to-day operational costs. It simply cannot and will not continue.”

The annual accounts show a book loss for the year of $10.6 million. Despite the loss, council has not had to borrow the additional $2.5 million that it warned might be needed to continue funding services in December 2011. The Council already owes $79.1 million.

“The additional borrowing would not be required as a number of savings have been made which has meant that we have avoided the need for additional borrowing,” says chief executive Steve Ruru.

Full copies of the Annual Report are available online at www.kaipara.govt.nz or from council offices.