The building of the Mataura Valley Milk plant at McNab has provided a financial silver lining for the Gore District Council, with an increase in revenue of $522,000.
The council’s borrowings at June 30 stood at $17million.
The revenue came from funds paid to the council relating to the designing and building of the MVM industrial wastewater treatment hub.
Chief financial officer Luke Blackbeard said in a memo to the council relating to the draft annual report, an overall surplus of $658,000 was posted, compared with the forecast deficit of $312,000.
“However, $368,000 of this relates to an increase in the value of the council’s interest rate swaps,” Mr Blackbeard said.
If the MVM development funds and the increase in the value of the interest rate swaps were removed, the council would have recorded a deficit of $232,000, he said.
“This is a positive variance of $80,000.”
The council received an unqualified audit, which meant meant the auditor was happy with the set of accounts and they gave a true and fair view, he said.
a “couple of small things” to be referred to the audit and risk committee.
“The council met all of the financial prudence benchmarks.”
Mayor Tracy Hicks said in the draft foreword a large part of the previous 12 months revolved around planning economic growth arising from the $240million MVM plant.
“The council’s direct involvement in the plant has included being responsible for the design, construction and ultimately operation of an industrial wastewater treatment hub being sited on the council’s land near the oxidation ponds at south Gore,” Mr Hicks said in the foreword.
Funding for the infrastructure was the responsibility of MVM.