Surplus carried forward for CODC

A surplus of nearly $8 million was carried forward from the last financial year, slightly less than expected, according to the Central Otago District Council’s annual report.

The Central Otago District Council (CODC) adopted its 2024–25 Annual Report at its last meeting, closing out a year with significant increases in energy and insurance costs leading to double digit rate increases.

Audit New Zealand’s report found the most significant variances in income were subsidies and grants, fees and charges and interest revenue. The most significant variances in expenses are personnel costs, finance costs and other expenses.

There were 54 council staff with salary packages of more than $100,000 a year including five earning between $200,000 and $339,999.Staff did not seem to be taking holidays. Annual and statutory leave entitlements were up from $825,000 in 2023-24 to $941,000 in 2024-25.

Insurance costs increased about $200,000 in the year and energy prices had risen similarly, the report says.

More than three-quarters of the council’s spending was on roading, water infrastructure and waste, and more than half the increase in rates was attributable to expenditure relating to Three Waters.

Presenting the report, Central Otago Mayor Tamah Alley and chief executive Peter Kelly said the community had felt the impact of peak rates, while the costs of providing basic services continued to rise.

Mr Kelly said it had been difficult trying to keep rates to a manageable level.

‘‘It has been a challenging year, with our community feeling the burden of increased rates while the costs of providing basic services continue to rise. We are working tirelessly to position Central Otago to navigate these financial challenges by identifying efficiencies and alternative funding opportunities.’’

Mrs Alley said despite the challenges, the year had had a number of highlights.

‘‘We’re proud to see long-awaited community projects taking shape, but this council has kept its focus on the essentials. Our annual report highlights major drinking water upgrades to meet new standards, emergency works on roads following numerous severe weather events, and improvements in energy efficiency and resilience at our pump stations. Alongside these core priorities, we’ve also advanced planning for the future with initiatives like District Plan Change 19 to support growth.

‘‘Looking ahead, we’re confident and prepared to meet the challenges of substantial government reform while strengthening Central Otago’s communities.’’

See the full report at https://www.codc.govt.nz/publications/reports/annual-report