Council $350k surplus well ahead of budget

Northland Regional Council CEO Malcolm Nicolson

The Northland Regional Council has a higher net operating surplus than it budgeted for so far this year with $355,000 more in the kitty than expected.

On the other hand, the council's capital expenditure for the year to date is $5.585 million compared with its budget of $4.739 million.

Before transfers between financial reserves, there was a net operating surplus of $5.005 million against a budgeted net surplus of $4.115 million - a favourable variance of $890,000.

The financial report in this week's council agenda states revenue is ahead of budget predominantly due to returns on the Community Investment Fund being greater than budget by $346,000.

Task Force Green revenue of $200,000 contributed to user fees being better than budgeted by $269,000, and rates penalties of $128,000 contributed to rates income being ahead by $172,000.

The swings and roundabouts include investment interest being $62,000 less than anticipated due to the Countdown building at Kensington not being sold, offset in part from the sale proceeds of other properties.

Dividend income was less than budgeted by $250,000 and investment property income less than budget by $161,000, due to properties being sold or untenanted.

The increased capital expenditure was mainly through $3.369 million spent for river management, on the Whangarei detention dam. The council also ran up unbudgeted costs of $1.104 million for the purchase of a Reyburn St property, and spent $528,000 on 12 new vehicles, as budgeted.