Council on track despite overspend

Garry Poole.

Tauranga City Council's $117 million capital works programme for this year was expected to stay in budget, chief executive Garry Poole said. He was putting "perspective" around a news report on the $7 million of infrastructure capital works overspends for the financial year ending June 30. The figures were taken from the agenda of the council's finance and risk committee.

"The $7 million needs to be seen in the context of the total $117 million capital programme budget for the year which, overall, is expected to be well within budget," he said.

Mr Poole said most of the budget variance was a timing adjustment for expenditure that was already planned, like bringing forward the Elizabeth St parking building upgrade and the Oropi water treatment plant. He said the variances fell into three groups: planned expenditure brought forward, expenditure responding to growth pressures and expenditure responding to health and safety. "All these are reasonable and and responsible fiscal decisions for a council that is managing a growing city. We are adjusting to conditions and staying within the overall budget."

Debt for the year would be lower than budgeted, he said.