A budgeted deficit of $4 million has been avoided by the Otago Regional Council for the 2009-10 financial year.
Instead, the local body reported a $281,000 operating surplus.
The council's 2009-10 draft annual plan will be considered by councillors at a meeting tomorrow, and if approved, will be adopted.
A report to the council said the turnaround was the result of a $2.4 million greater-than-budgeted rise in the valuation of the council's shareholding in the Port Otago Ltd Group, the transport budget being $2 million less than expected due to the delay in the new Queenstown bus services, and some changes in grant revenue.
Expenditure figures showed that across all of its 10 projects such as air quality, consents and compliance, transport and rivers and waterway management, the council underspent its budget by $7.7 million, it said.
About $4.2 million of the underspending was due to delays to flood and drainage schemes, with cost estimates on the Leith Lindsay scheme still being reviewed, East Taieri drainage scheme replacement of the Owhiro Stream gated outfall structure being deferred and delays to consents for Shotover Delta work.
External revenue was $1.36 million under budget, in part due to smaller number of consents being applied for than expected and a reduced number of contracts being awarded to contracting arm Regional Services.
The incidents, complaints and oil spills project was overspent by $248,000 due to enforcement activity but an unbudgeted about $382,000 from infringement notices and prosecutions had been received.
Contributions to the Forsyth Barr Stadium continued being funded through internal borrowings.
While the Clean Heat Clean Air initiative had exceeded its budget with 35 more homes than the target 100 having clean-heat appliances installed and 50 fewer than the target 200 homes insulated, there was a corresponding increase in revenue from grants, fees and charges, with the $593,000 received greater than was budgeted.
The council's group result was a surplus of $995,000 made up of $281,000 from the council and $714,000 from the Port Otago group of companies which it owns, the report said.
