Rotorua Lakes Council will come in "better than budget" for the last 12 months, according to a report to be tabled at an upcoming committee meeting.

Councillors will hear from their finance staff at tomorrow's meeting of the council's Operations and Monitoring committee from 9.30am in the council chamber.

According to a report prepared by the council's finance manager Paul Sands, the council "has maintained its strong financial performance to come in better than budget for year 1 of the 10-year plan".

"Council's full year draft operating result is $1.4m better than budget. This draft result is slightly better than the $1.3m estimated operating surplus that has been forecast through the previous reports."


Mr Sands said overall capital expenditure up to June was $22.1 million.

"This is lower than budget mainly due to the seven projects not yet started, but is higher than the previous forecast of $21.5m due to completion rates on contracted projects that cross into the 2016-17 financial year being better than previously forecast.

"Overall council group debt was $165.6m at 30 June, which is a $1.9m reduction from the previous year and significantly better than budget that projected $7m of new debt.

"Council also holds $3m more cash on hand than last year. This additional cash on hand will be used to support the 2016-17 financial year capital works programme and a goal of no new debt next financial year," Mr Sands said in his report.

Five major capital work projects have been deferred.

They are $4.25m for the Terax project, a $1.96m upgrade of the Sir Howard Morrison Performing Arts Centre, $1.66m for a replacement computer system, $1.02m for earthquake strengthening of the I-Site and a $0.9m extension of the landfill.

Councillors will also be updated by staff during the presentation of the council's operational report for June and July.

The report covers finance and capability, Kaitiaki Maori, strategy and partnerships and performance and delivery.

But, according to the agenda report, "it is envisaged some matters will need to be considered in public excluded. The intention however is to maintain as much as possible in open meeting".