Buller District Council

Media Release- Council Reports End of Year Result for 2017/2018

25th October, 2018

Council meets next Wednesday (31 October 2018) where it will formally adopted the audited 2017/2018 Annual Report. The result, a $3m dollar loss against a budgeted surplus of $0.4m includes $1.5m dollars of unbudgeted non-cash accrual accounting entries related to the Councils infrastructure asset revaluation that is a paper revaluation that takes place every three years. The loss has no cash impact on the ratepayer and will not affect future rates. The result although disappointing follows a $1.5m profit last year and reflects a year that has been challenging for Council.

In the 2017/18 financial year Buller suffered at the hands of not just one, but two major storm events that caused a huge impact across the district – and that is especially reflected in the consequential effect on project delivery and costs. Throughout the district there was a considerable amount of work necessary to complete storm repairs, all the while providing the extensive delivery of the normal ‘business’ of Council.

Council-owned Buller Holdings had another good year, however due to winding up Westport Harbour Limited, the cash distribution reduced to $450,000 against a budget of $910,000. Moving forward the Holding company is in a strong financial position and is well poised to deliver a good result and an increase in distributions for the ratepayer in the 2018/19 financial year.

Councils total revenue of $23.5m was on target even accounting for a lower Holding company distribution, however Councils controllable expenditure against budget was impacted to the tune of $1.8m. This included unbudgeted expenditure redistributing grants from Development West Coast, additional roading repairs and civil defence costs relating to storms, and costs associated with water supply issues at Westport, Reefton and Punakaiki. In addition Council had to absorb the costs of taking over the harbour operations.

Council made good inroads into capital projects over the year even after taking into account issues and delays to the water supply capital projects around the district. There was $6m spent on capital expenditure which includes $1.3m for the purchase of the harbour assets during the year.


Live Cam