Rotorua Lakes Council is on target to pay down some of its debt at the end of the financial year, for the first time in 10 years.
News the council is expected to end the year with a cash surplus of about $3 million, providing an opportunity to pay down some debt, was welcomed by mayor Steve Chadwick and councillors at today's Operations and Monitoring Committee meeting.
Chief Financial Officer Thomas Colle recommended a portion of the cash surplus be used to reduce debt but that sufficient funds be kept for working capital requirements.
Councillors supported the pay down of some debt, which will be reported back to the committee at a future date.
Mrs Chadwick said it was a "great result" that provided a timely opportunity for the council
She said it reflected long-term plan discussions about investing in growth while at the same time retiring debt.
Commenting after the meeting, Mrs Chadwick acknowledged an ongoing commitment by management to maintain tight fiscal control and financial sustainability.
"This is very reassuring for council. This really gives us confidence that the organisation is getting on top of things. It feels like we're getting a better business-as-usual consolidated picture."
Mr Colle told councillors depending on the final figure, he would consider paying down $1 million worth of debt and holding the remainder as cash surplus and would expect to end the year with a debt of about $167.7 million.
The council started the current financial year with $168.7 million of debt.
Council chief executive Geoff Williams said the positive financial situation was an indication of the strength of the realigned organisation to respond to issues as they arose and a commitment to achieving positive results.
"In this case, they've delivered a very good outcome," he told councillors.