The Tararua District Council's financial performance was tracking ahead of budget, councillors were told last week.
"Our operational revenue is ahead of budget by $258,000 which is very favourable," finance manager Cameron McKay said.
Costs were tracking with budget while the council's external debt remained at $11 million and was expected to stay there for the year, Mr McKay said.
There has been great improvement in the last quarter for the council's animal-control department, with staff now able to focus on compliance.
But the council isn't expecting to receive its full volume of income from its forestry business until harvesting is complete and this leaves its commercial results in an unfavourable position at the moment.
"However, our operating result is sitting better than we thought," Mr McKay told councillors.
Councillor Shirley Hull said the latest financial figures showed the projects and business planning around all of the council's projects now reflected better planning and monitoring.
Council chief financial officer Raj Suppiah agreed that the implementation of project management had become "better".
"Our rates arrears have dropped, with $507,000 of arrears collected in the six months to December 31 last year."
Rates arrears owed to the council as at September 31, last year, totalled $1,565,146, which had been reduced to $1,315,844 by December 31.