The Clutha District Council recorded a larger-than-expected surplus in the 2007-08 financial year.
The year brought many highlights but also challenges, Mayor Juno Hayes said in the annual report.
The council reported a $3.76 million operating surplus for the year ending June 30, 2008, up on the forecast $2.46 million.
Part of the extra money came from a greater payment by Land Transport New Zealand, while another $668,000 from the Department of Corrections for its contribution towards the Milton water treatment plant came about because of the timing of invoices.
Mr Hayes said one of the biggest highlights was almost a year ago when the council became just the 10th of 85 local authorities to become accredited and registered as a building consent authority.
This milestone was achieved ahead of time, under budget and was the culmination of several years' hard work by regulatory services staff, he said.
The sealing of the last gravel section of the Southern Scenic Route - Finlayson Rd between Waihola and Taieri Mouth - was another major achievement, while the commissioning of two new water-related projects - the Clydevale-Pomahaka rural water scheme and Milton water treatment plant - was also completed.
The district's inaugural youth council took office, while the Clutha Country brand continued to gather momentum, with new district boundary signs erected.
Mr Hayes said the annual residents survey showed the council was on the right track, with wheelie bins and library services getting the highest rankings for the second year running.
However, the Milton flooding event in July last year was a major challenge and a timely reminder for all residents to be prepared for the possibility of a major disaster.
