Infracore, formerly known as Castlecorp, made a profit of $134,000 to the year ending March, but Destination Rotorua is heading for an end of year loss, according to a council report.
Rotorua Lakes Council's Operations and Monitoring Committee will meet tomorrow at 9.30am to discuss reports regarding the financial performance of its council-controlled organisations.
Councillors will hear a presentation from Rotorua Airport chief executive Mark Gibbs with agenda reports produced for the council's other council-controlled organisations, Rotorua Economic Development - trading as Destination Rotorua - and Infracore, the former Castlecorp and Rotorua Contracting.
According to an agenda report, Infracore is on track to hit its target of a $310,000 profit for the financial year ending June 30 and delivered a profit of $134,000 for the year to March.
The report stated costs were about $400,000 below budget due to less work being undertaken and "the cost efficiency gains the company have been able to deliver are on track to exceed budgeted targets".
But, a report from Rotorua Economic Development stated while the company was up $145,000 to March, its full year forecast was indicating a $195,000 loss.
The report stated a review of forecast expenditure was under way to address the loss in the hope of ending the financial year within budget.
Overall, the council's finance team reports that "there is no change to the forecast provided at 31 December 2017".
"However, with the recent weather events in the month of March there may be some additional invoices still to be issued to council.
"The closure of the museum means council will not be able to achieve budget and will likely end the year $1.3 million behind budget.
"The closure will result in revenue shortfall of $1.3m which will be
partially offset by additional revenues in consenting.
"Staff costs are forecast to be higher than budget as a number of areas are having to review and increase staffing levels as a result of demand for services, in particular consenting and district licensing.
"These costs are being offset by increases in revenue," the report stated.
Rotorua Lakes Council meeting
- Operations and Monitoring Committee
- In the council chamber from 9.30am
- Financial reports from Infracore, Rotorua Airport and Rotorua Economic Development