Council Investment Fund Posts Strong Result
Tuesday, October 14, 2014
Reduced expenditure and higher than budgeted income has seen the South Taranaki District Council finish the 2013/14 financial year with a $1.82 million operational surplus according to figures released in its Annual Report, which was adopted at last night’s (13 October) Council meeting.
Council Chief Executive Craig Stevenson says he is very pleased with the financial performance of the organisation.
“The surplus was achieved through lower than budgeted expenditure ($673,000) and higher than budgeted income ($1,149,000) which gave us an operating surplus of $1.82 million dollars before various accounting adjustments,” he says.
Long Term Investment Fund Performs Strongly
Mr Stevenson says the Council’s Long Term Investment Fund (LTIF) also continued to perform strongly.
“The LTIF returned $14.3 million for the year which was about $5.2 million or 56% ahead of budget. This is the third year in a row the fund has significantly exceeded budget expectations,” he says.
Mr Stevenson says at year end the LTIF balance totalled $120.8 million. All revenue over and above the annual drawdown of $5.6 million is returned to the fund to build it up for those years when it doesn’t perform so well.
Each year the Council’s $5.6 million drawdown provides $3.87 million to subsidise general rates and a further $1.73 million to service interest and loan repayments for specific community projects. In this way the LITF has returned over $78 million back to the South Taranaki Community since it was started in 1997.