Coast council report reflects rocky period
From local democracy reporter Brendon McMahon:
The West Coast Regional Council's annual for 2021-22 shows a deficit of $1.1 million.
The council collected $8.16m in rates, while total revenue was just over $17.7m.
The report period covers a rocky time at the council, marked by ructions between governance and management through much of 2021.
In the end it saw the exit of short-time chief executive Vin Smith and the transition to current chief exeuctive Heather Mabin. At the same time, natural disasters occurred including the July 2021 Westport flood, with increased call for new flood infrastructure.
It has also had to finalise the new combined Te Tai o Poutini Plan, and accommodate a raft of legislative changes and submissions.
The annual report notes the yet to be resolved $30m claim against the council by the Scenic Circle Hotel Group relating to the March 2016 Waiho (Waiau) River flood which swept through the former Mueller Wing, just north of Franz Josef Glacier township.
The council paid its employees $6.2m in 2021-22 compared to $6.4m the previous year. Elected representatives total remuneration was $401,237.
Consultant and contractor costs rose by more than $860,000 to $3.98m, compared to $3.12m.
Mabin said on Thursday that most of that cost was related to infrastructure/construction projects the council was undertaking on behalf, and VCS pest control operations - which were outside the normal operational functions of council.
"That is not consultants we have come in here," she said.
It was an audit requirement that any service the council sought externally, such as an archive project being undertaken by Development West Coast, "must have a contract".
Mabin said internal staff cover via consultant/contractor use for operational matters had been a "very low spend" in the period.
Aircraft hire totalling $2.6m was entirely related to VCS contract work.
The report details ongoing NEMA insurance claims and disaster cost recovery. Claims for costs from the floods of February last year and flood damage to rating district assets at Franz Josef, Karamea, Taramakau and Wanganui River at Hari Hari were nearly $600,000.
Further estimated costs of $321,557 were required in the current year to complete repairs, with a further claim now lodged for $292,559.
Overall, while the audit covers the council's financial performance it also audits its statutory function performance across every service area council provides.
These include regional leadership and the TTPP, council's Resource Management Act functions, its hydrology and flood warning services, river, drainage and coastal protection, community resilience and regional transport.
Overall the council posted a deficit of $1,112,777 against a budget of $10.5m, compared to a $10.57m profit the previous year.
The main causes of the deficit were the global economic impact on council's investment portfolio and the delayed IRG 'shovel ready' infrastructure projects funded by the Government. Subsidy and grant revenue from that source was $9.5m less than budgeted due to the delay in getting the infrastructure projects off the ground. As a result, the relevant funding requests from the Government were down from an expected $11.4m to $1.5m.
*Public interest journalism funded through NZ On Air
Poll: Should we be giving the green light to new mining projects? 💰🌲
The Environmental Protection Authority announced this week that a proposed mine in Central Otago (near Cromwell) is about to enter its fast-track assessment process. A final decision could come within six months, and if it’s approved, construction might start as early as mid-2026.
We want to know: Should mining projects like this move ahead?
Keen to dig deeper? Mike White has the scoop.
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53.1% Yes
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46.9% No
‘Tis the season to not get scammed ...
As Christmas gift shopping moves increasingly online, scammers are ramping up their activity across the country.
Dunedin’s Investigation Support Unit is seeing more and more people fall victim to scams and other fraudulent activity, particularly on Facebook Marketplace.
There are a few ways to avoid the scams and keep yourself safe doing online trades this holiday season, says Southern District Service Delivery Manager Senior Sergeant Dalton.
🔒 “A good first step when looking to purchase something on Marketplace is to check when the seller’s Facebook profile was created. If it’s very recent, there is a higher risk that they have just created this account for a one-off fake item.”
🔒 Another important step is to make sure the seller’s profile name and bank account name match up. “We’re seeing a lot of scammers claiming their bank account name is different because it belongs to their partner or family member - that’s a huge red flag."
🔒 “When you’re selling, never trust a screenshot anyone sends you showing that payment has been made. Check your own bank account to make sure a payment has gone through."
🔒 “Quite frankly, it’s best for all parties to agree to pay, or be paid, for items in cash and in-person. Ideally in a public place with CCTV coverage."
🔒 "If you’re buying a car, check Carjam.co.nz to see if it’s stolen or if there’s money owed on it.”
A reminder: Suspicious activity can be reported on 105
🚧 Big upgrades are on the way for Haast!
Motorists travelling on SH6 near Haast should be ready for some delays, with $5 million worth of work kicking off on important improvements to the highway.
The Gates of Haast Gorge bridge, which connects the 140km journey between Haast and Wānaka, is a crucial link — especially for locals and visitors heading to the West Coast glaciers.
A bit of patience now for safer, stronger roads ahead! 💛
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