Committee confirms application of surplus

The Waikato Regional Council’s budget surplus for the 2010/11 financial year and its accumulated surpluses are set to fund essential building repairs, the Tui Mine remediation project and costs related to the Home of Cycling consultation.

A report to the finance and audit committee today detailed the regional council’s positive financial and service performance for the year ending 30 June 2011.

The report to the committee noted an unallocated surplus from last financial year of $985,000, while the accumulated surplus from previous financial years was $1.87 million.

The committee agreed that $1.7 million of this would meet remediation costs associated with the council’s Grey St building in Hamilton. Costs associated with relocating staff during remediation are yet to be identified. The remediation is necessary due to leaks that have been discovered and the council has been putting money aside for repairs so that they wouldn’t fuel rate increases. The council is also looking at legal action to cover remediation costs.

Another $400,000 has been earmarked for the council’s second contribution to the costs of cleaning up the old Tui mine site at Te Aroha.

The surpluses would also provide funding for the unbudgeted consultation costs associated with the Home of Cycling consultation process once these costs were confirmed.

Finance group manager Mike Garrett said: “It is pleasing that the surpluses mean this work can be funded without having an impact on future rates.

“We’ve been able to achieve surpluses by a continuing tight focus on efficiency gains and cost savings where possible.”