Annual Report 2012 – Outstanding Result

The Queenstown Lakes District Council reported an outstanding result for the 2011/12 financial year, despite difficult economic conditions, QLDC finance general manager Stewart Burns said.

The QLDC will be asked to adopt its ‘report card’ for the previous financial year at its full Council meeting on Tuesday (30 October, 2012).

The Council has reported that in the 2011/12 financial year both Council and its subsidiaries; Queenstown Airport Corporation, Lakes Leisure Limited and Lakes Environmental Limited, reported a surplus of $17.3m for the year.

“This is money that goes towards capital cost and debt repayment,” Mr Burns said.

The reported surplus includes $4.3m of unrealised losses from the revaluation of investment property. This follows a 2011 value reduction of $1.6m.

Operating revenues were up by 18.6% on last year but below budget by 8.5%. Operating costs were 4.5% under budget for the year and also down on last year by 2.5%.

Operating expenditure was $3.6m (4.5%) below budget. “It’s a great result and means that we were able to stay within budget from an operating perspective. It has been achieved through savings across most activities,” Mr Burns said.

“During the 2011/12 period Council continued to work towards debt reduction and the adoption of an affordable 10-Year-Plan in June this year, which we achieved. The positive results were based on stronger revenues and effective cost controls,” Mr Burns said.

The 2011/12 year saw a significant drive towards value for money, which included a three waters contract review, a reduction in the staff costs and a review of organisational performance management.