Tauranga City Venues has been saved from a negative end of year balance by a property revaluation, the council controlled organisation's annual report shows.

Tauranga City Venues Limited is wholly owned by Tauranga City Investments Ltd – which is wholly owned by Tauranga City Council.

Baypark recorded a $2million operations loss in the last financial year.

The council controlled organisation took over three new businesses at the end of the last financial year; the Baypark Speedway business, the reorganised catering business at Baypark, and the new TECT Arena.

Board chairman Graeme Elvin says restructuring catering and buying the speedway business was first and foremost about controlling the site.

The speedway decision was reflected in driver support, but the weather ruined the season and the flagship opening night fireworks was cancelled due to the new neighbours - the Rena oiled bird recovery operation.

Graeme says poor speedway crowds have a knock-on effect on catering revenues, and managing wide variations in patronage and usage was challenging across the whole site for the catering team.

'The quality and standard of our catering is outstanding and is proving to be a key contributor to the venue package.”

In the financial year, catering was the best performer making $1.7million.

Speedway made $536,000 and the Arena brought in $1.153million. There was about another $1million from functions advertising and sponsorships rentals and sundry events.

Total operating revenue for the year was $4.543million.

Operating expenditure was $6.489million, the biggest item being $3.879million comprising $3.3million in employee and operating costs, $253,000 in administration and $146,000 on maintenance. TCVL's operating deficit is $2.056million.

The books are saved by a $9.8million revaluation of property plant and equipment that pushes TCVL's total comprehensive income for the period to just over $5million.

TECT Arena was sold by TCC to Tauranga City Venues for $40million on August 13, 2012.

The boards of TCIL and TCVL gave by resolutions on July 26 2012, issuing 11 million $1 ordinary shares payable on August 13 with a further 16 million unpaid ordinary shares in respective companies.

The balance of funding is by a $23million loan from TCC to TCVL and the repayment of a loan by TCC to TCVL of $6million.

The $6million was previously provided by external funding (TECT) to TCVL. In the trade and other receivables list, that loan to TCC is stated as being $6.7million. TCVL is paying 6.75 per cent interest on the loan.

The statement of accounting policies accompanying the report states TCVL's primary objective is to provide goods and services for the community or social benefit, rather than making a financial return.

For the purposes of the New Zealand equivalents to International Financial Reporting Standards, TCVL has designated itself as a public benefit entity.

As it has 'no public accountability”, TCVL qualifies for differential reporting exemptions, the notes say. All available reporting exemptions allowed under the framework for differential reporting have been adopted, with the exception of the statement of cash flows and taxation as presented.