Council surplus hit by weather insurance claims costs

Extreme weather events over the last year have left the Waitaki District Council with a reduced surplus expectation for this financial year.

In a report by Otago Daily Times, the council’s expected surplus was $381,000 – a far cry from the budgeted surplus of $3,432,000 and last year’s surplus of $1,531,000.

The publication detailed that the figures reflect an unbudgeted increase in depreciation resulting from the roading revaluation ($1,250,000), reduced revenue due to the reset on the $6 million redevelopment of the Forrester Gallery ($2,000,000), and the costs incurred from extreme weather events ($1,600,000).

However, Waitaki District Council accounting manager Ian Wells reportedly said they could expect the resolution of related insurance claims in the coming week. He expects anything from nothing to $500,000 “or better.”

The council has already received $550,000 in NZ Transport Agency subsidies for flood damage, and $85,000 from insurance payouts.