Mining royalties from the Hawkeswood gold dredge operation at Millers Flat will provide council with an extra $165,000 income a year.

The surprise announcement by Group Manager - Business Support Saskia Righarts came near the end of six hours of deliberations o Central Otago District Council’s Long Term Plan (2025-34) on Tuesday.

Councillors debated what the annual income could be used for and Mayor Tamah Alley reminded everyone about their $1 million Emergency Event Fund deficit.

Cr Stu Duncan, a farmer from the Maniototo, said that money should be used to fund roads that needed repairing - particularly after flooding and extreme weather events.

“The roading infrastructure is everyone’s infrastructure.”

Cr Sally Feinerman, from the Teviot Valley, questioned why the income wasn’t going to stay in the community it came from, but with districtisation now in place, it was spread across all areas.

Deputy Mayor Neil Gillespie pointed out that most of the emergency works on roading have been in the Teviot and the Maniototo, “so in effect you are getting it back anyway.”

Mayor Alley said at the moment roading was one of council’s biggest costs, “and we do not want to get to the point where we are funding this out of a deficit bucket.”

Cr Duncan agreed and said the region hadn’t experienced a major disaster yet, and said it would only be a matter of time before there was a massive snow dump in Naseby - "you’d be a fool to think it will never happen."

Mayor Alley said it was important to highlight to council the $1million deficit was a problem, and the $165,000 a year was an opportunity to alleviate that.

Councillors agreed to add $165,000 to the Roading Emergency Works Fund annually and $120,000 to the Emergency Event Fund.

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