Floods and fear have added up to the Whangarei District Council having spent almost $9m over budget at the end of last month.
WDC finance and support committee chair Warwick Syers yesterday described the over-run as "not a pretty picture", but said it would be reduced by cost savings in the
capital expenditure programme, mainly roading.
The amount, officially called "unfavourable variance", is expected to be slashed to $6.3m by the end of the financial year on June 30.
The actual operating loss at that point will be just $100,000 because the council originally budgeted for a $6.2m profit in its total cash outlay of $117m in 2008-2009. The main causes of the overspend were higher than expected payments to contractors cleaning up after flooding; restoration work after flood damage; and loss of development contributions as developers pulled the plug on projects over the past few months.
The figures were tabled at yesterday's meeting of the finance and support committee.
Cr Syers said development levies were about $4.7m down because everyone was "crawling into their shells" with the economic slowdown - but the money would eventually come to hand as developments were completed.
Mayor Stan Semenoff said "it's a time issue, isn't it".
Cr Syers agreed: "It is a time issue, but it just won't look very good in this year's books."
Roading would have to be the main area of savings - "unfortunately roading always has to be the fall guy".
The good news was that lower interest rates meant that short-term funding costs had dropped.
Cost-cutting areas include some seal extensions, road resealing and strengthening, bridge reconstruction, cycle ways, drainage control, new footpaths and parking.
Also deferred to meet savings targets are the Waipu Cove/Langs Beach trunk sewerage system; water meter replacements; the Hihiaua Reserve upgrade; the Ruakaka Esplanade development; a stock effluent disposal site; central business district refurbishment; cliff reinstatement at One Tree Point and new bus shelters.
