Council faces nasty reversal of fortune
Waimate District Council's budgeted surplus of $165,000 has turned into a deficit of $1.3 million for the nine months to April.
About a third of the budget blowout, $491,000, is made up of depreciation on council infrastructural assets, which were revalued last year at $43m, considerably higher than expected.
Mayor John Coles says he is disappointed with the deficit.
"Time is running out; I think we are staring down the barrel of a deficit I'm not happy with."
Water-scheme revaluations and New Zealand Transport Agency subsidies were among the factors.
Mr Coles said the operating deficit had already been funded from operating cash flows and borrowing was unnecessary.
"As there is no requirement to borrow for the current deficit there is no impact on next year's or the year after rates. The Long Term Plan has been prepared using current funding assumptions and no impact is expected."
The Timaru Herald