Roads has retained the right to maintain the Clutha district's parks and reserves.
In a public-excluded council meeting on Wednesday, the Clutha District Council awarded its green-space contract to SouthRoads at a tender price of about $2.54 million.
The contract is to maintain the council's parks, reserves, toilets, play areas and other green spaces for the next three years.
The council noted the shortfall of $60,879 in the 2016-17 annual plan budget would be carried forward as a deficit into the new year.
The council also resolved to look into how the shortfall for the contract would be funded.
The council formally adopted the 2016-17 annual plan and struck the rates for the coming financial year.