A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.
A109 Light Utility Helicopter flight with mayor Gisborne City from the air in November 2023.
Opinion
A report to the council’s Finance and Audit committee tomorrow says capital expenditure for the first six months of this financial year was $12.4 million against a budgeted $18m — 69 percent of what was forecast — while a net surplus of $2.8m at the end of December was$600,000 ahead of budget.
The favourable net surplus was due to $5m more revenue coming in than planned, mainly due to the timing of grants for the inner harbour redevelopment and higher NZ Transport Agency subsidies for roading emergency works.
Total expenditure was $4.8m higher than budgeted in the annual plan, due to the large roading emergency works programme ($5.1m more than was estimated in the plan). This was partially offset by lower than planned finance costs ($357,000 under budget, as interest rates were lower than the 5 percent forecast) and employee costs ($287,000 under budget), and lower than expected operating costs in the waters and rivers control areas.
The report notes that while the emergency works programme related to the June 2018 flood events has nil financial impact on the council, its operating revenue and expenditure show variances related to it because the assessment of the costs — totalling $26.6m, with $9m-$10m of the work expected to be completed this financial year — came after the Long Term Plan was adopted.
Almost all of the $5.6m under-spend in the council’s works programme relates to renewals, with $6.9m spent against a forecast mid-year spend of $11.9m (so 58 percent completed). Of this, the roading renewals programme has seen $3.5m of expenditure against a budgeted $6.1m (57 percent).
Other areas behind budget at the end of December were wastewater (71 percent, $1.5m vs $2.1m), stormwater (42 percent, $280,000 vs $660,000) and water supply (30 percent, $182,000 vs $613,000).
Non-renewal capital expenditure was $5.5m against a forecast year-to-date spend of $6.1m.
The finance committee report said a significant portion of the financial year’s capital programme was expected to occur in the first six months of 2019.
