In the last financial year, the council had a surplus of about $2 million, although this was not a profit but due to more income and some savings. However, not all was available to offset rates.
For example, the New Zealand Transport Authority roading subsidy or rates collected for services such as water, can be used only in those specific areas.
The council's finance and audit committee tomorrow will consider a report from chief financial officer Paul Hope on the first six months to December 31 of the 2014-15 financial year.
It reports total income of $22.742 million, of which $17.326 million has come from rates and user charges.
Operating expenses were $21.112 million, leaving the surplus of $1.63 million.
However, Mr Hope expected that to even out as the year went on.
''The council has continued the steady start to the [financial] year,'' he said.
All activities were operating close to budget and expectations in terms of revenue and expenditure.
Much of the surplus had been identified as timing, rather than permanent variances.
A major variance was the New Zealand Transport Agency subsidy for roading, which was ahead of budget because of work being carried out now, and which would ease during winter.
