Tararua District Council's operational spending is relatively on track for its third quarter. Photo / NZME
Tararua District Council's operational spending is relatively on track for its third quarter. Photo / NZME
Tararua District Council seems to be relatively on track with its operational expenditure, councillors were told.
Finance manager Bronda Smith presented the nine-month report to a full council meeting last week.
She pointed out a couple of areas that did have some issues - one was roading which had a"significant maintenance and operational effect because of emergency reinstatement".
Waka Kotahi New Zealand Transport Agency did cover some of that under its emergency works programme.
Smith said that was primarily because while metered water was above normal consumption than the year before, it was actually lower than budgeted and was likely to continue that way until the end of the year.
"Especially with the restrictions and bits and pieces that we've had over the summer months and the crises that we've had as well."
Councillor Sharon Wards was concerned about some variances in the report. Photo / NZME
Councillor Sharon Wards asked about other areas of the performance report, pointing out that there were some areas where there was a favourable variance.
"There are significant amounts of money that, with only three months to go I'm concerned that are not going to be utilised. We've already talked about the carry over that we've got. I'm rather concerned that there is money that our ratepayers have given this council that is clearly not being spent on what we budgeted for."
In the last quarter, it was noted that the council had some carryover budget for various projects, one of which was the multi-year project on Route 52.
Wards said she was concerned there was a lot of money floating around.
"This is the rubber hitting the road and we're proposing what we're proposing and yet there's stuff that hasn't been done that I'd like to either see done or redistributed."
Smith said that overall council had a net deficit of $2.1 million, with some of that in the roading and water spaces.
"Although it could look like there's bits and pieces through the report, some of those activities we can't move money anyway."
She said when it came to reconciliation at the end of the financial year, she doubted there would be a lot left over.
Chief executive Bryan Nicholson said it was not unusual for budgets to be tracking so it looked like there were some funds that could be moved from one area to another.
Councillors also asked about the Three Waters Service Delivery Reform subsidy in the report.
Wards said there was a significant difference between what council was hoping to get and what it had actually got.
Smith said it was on track, although it came in "in lumps".
Group manager of operations Tina Love said payments were based on progress of reports on projects.
She said one of those projects was the Eketahuna water treatment plant upgrade.
"As long as we complete that project, they will pay based on completion. But we only submit for payment for those every quarter. We're always going to be a little bit behind."
Further questions were asked in regard to revenue on rates penalties up to the end of March, at $241,000 more than budgeted reported.
Group manager corporate Raj Suppiah explained that this was due to work done in terms of rates debtors.
"It's difficult to forecast that revenue. We take a very prudent approach to that rates revenue, so that's why you find in some years we are tracking and some years we are tracking higher than budget."
Council had also had some ratings sales which hadn't been budgeted for.
