Council reports deficit; stronger financial controls in place

The Grey District Council is reporting a total deficit of $4.78 million for the year to June 2025, noting that stricter financial controls are now in place.

Council’s Annual Report went before councillors yesterday for approval and is expected to be adopted next month.

Of the $4.78 million deficit, $658,000 relates to the repayment of the West Coast Theatre Trust loan. In addition, $2.84 million in subsidy revenue for the library cannot be recognised until the next financial year.

Without these items, and after accounting for under-budgeted depreciation, Council would have reported a $659,000 surplus.

“Council is focused on managing money wisely, improving how we do things, and helping build a strong, resilient future for the Grey District,” chief executive Joanne Soderlund said.

Over the past nine months, a new and experienced senior leadership team has been established. This team has implemented stronger financial controls and closer budget monitoring, ensuring robust financial discipline and greater accountability moving forward.

Council borrowing stands at $38 million, with $19 million of this relating to water, wastewater, and stormwater assets.

Personnel costs increased from $8.012 million to $8.821 million. However, contractor and professional services costs decreased from $15.7 million to $14.7 million. Staff numbers increased to 95 full-time equivalents, up from 89 last year, as several existing vacancies were filled.

Like the rest of New Zealand, the Grey District continues to face significant financial pressures resulting from the nationwide cost-of-living crisis. Rising costs have placed strain on both households and Council operations, contributing to actual expenses exceeding budget forecasts during the year.

Some highlights from Council’s work programmes over the past year include:

• The new library base build, which will create a community destination in the town centre.
• The opening of the new toilet block at Anzac Park.
• Installation of a new winch at the Port.
• Completion of the Arnott Heights Water Reservoir.
• Ongoing improvements to many of our retirement units, including new roofs, heat pumps, insulation upgrades, better weathertightness, enhanced security, and new driveways.

Read the report at: November - Grey District Council