Council tracking to deliver on budget

FILE

Rotorua Lakes Council's financial performance after seven months of the financial year indicates the council remains on target to deliver on the budget councillors set for year one of its 10 year plan.

In his report to the council's Operations and Monitoring committee today, chief financial officer Thomas Collé said the council's operating result at the end of January was $1.4 million better than budget. The year-end forecast is expected to be $700, 000 better than budget

"It is very pleasing (that) both operational revenue and operational expenditure are tracking well to budget," he told councillors.

Capital expenditure is less that budget at present and forecast to end the year $5.7million under budget.

This is a result of five projects which were expected to be completed this year but have now been stopped or deferred.

They are the Sir Howard Morrison Performing Arts concert chamber upgrade (stopped as requires external funding) and earthquake strengthening (deferred), construction of the Terax waste sludge plant (deferred), council's core computer software (deferred) and earthquake strengthening at the city's i-site (deferred).

"As a result of both operations and capital expenditure forecast to end the year better than budget, overall debt would increase by $1 million rather than the $7 million indicated in the long term plan," said Mr Collé.

"There are no known material variances that would result in either the budget or financial strategy limits not being met."

Committee chair Janet Wepa welcomed the result but said expectations remained for Mr Collé to monitor and position council so that there was no borrowing by end of this financial year.

"I appreciate the effort you've put into a plan of not borrowing any more money. We've got to manage our debt but we also don't want projects to drop off that could be done," she said.

See summary from chair Janet Wepa