Growth projects delayed
Waipā District Council is spending less than planned this year, but delays to major projects are starting to bite.
A report to yesterday’s Finance and Corporate committee shows operating spending at 81 percent of forecast, just below the expected year to date benchmark.
Waipa District Council headquarters in Te Awamutu. Photo: Mary Anne Gill
At the same time, revenue is running slightly ahead at 85 percent, leaving the council with an accounting surplus. Income was boosted by a dividend from Waikato Regional Airport, in which Waipā District Council holds a 15.6 per cent stake.
The underspend is partly due to vacant roles. Lower employee costs are helping to keep spending below forecast. Lower-than-expected interest costs have also contributed to the result.
The meeting was held after The News went to press.
Financial accountant Nada Milne reported the result reflected timing rather than extra money in the bank.
“The higher income, together with lower operational costs, has resulted in an accounting surplus,” she said. “But this does not necessarily translate to an actual cash surplus at the end of the rating year.”
The bigger issue is capital works.
Council has spent just 62 percent of its capital programme so far, well below the expected 83 percent.
About $23.5 million worth of projects have been carried forward from last year, and further growth projects are also pushed out this year. A significant share of projects is now being pushed into the next financial year.
Milne said the delays were largely outside council control.
“Slower than expected land purchases and developer or contractor delays have meant a number of projects have been carried forward,” she said.
Growth-related work has taken the biggest hit.
Capital spending for growth projects is now forecast at $96.2 million, down sharply from the original $166.2 million budget. Council said many of those projects would now fall into 2026-27.
The council continues to plan for growth. District values have increased by about 1.25 percent over the year.
“There have also been capital adjustments bringing the forecast down, with the majority related to growth projects deferred to the next financial year,” Milne said.
That has a direct impact on communities like Cambridge and Te Awamutu, where much of the district’s growth is concentrated.
Projects linked to housing, transport and infrastructure are being deferred, adding pressure to areas already dealing with rapid population growth.
A review of the capital programme is under way to better align budgets with realistic delivery timeframes.
“Carry-forward capital budgets will be reassessed through the capital works programme review to better align forecast cash flows with budget timing,” Milne said.
For Waipā residents, it means some of the roads, pipes and other infrastructure needed to support growth will take longer to turn up.
Growth projects delayed
