Media Release

20 February 2012

Council reports second quarter financial results

The City Council has recorded an improved operating position of $600,000 better than budget for the first six months of the current financial year.

Chief Executive Paddy Clifford said that the result needs to be considered in the context of the full year.

“We’re pleased to be reporting a positive result at this time, but we don’t expect to see a surplus like this at year end. We have deferred some projects which will now be completed in the second half of the year and the Council is also being challenged by lower revenue than expected. We have a tough six months ahead of us and we’ll continue to search for savings wherever possible.”

Chief Financial Officer Grant Elliott said the Council had deferred a number of Capital programmes which would lead to a reduction in borrowing.

“At the six month point, the year’s Capital Expenditure programme was less than planned with $8.1 million incurred against a budget of $12.9 million. The overall capital programme budget for the year is $49 million however some of this will now not be spent this year as several programmes have been deferred”.

In presenting the Council’s second performance review for the financial year to the Finance and Performance Committee, Financial Accountant Keith Allan said that the effects of the recession continue to affect the Council’s overall financial position.

“The recession continues to have effects on revenue streams and developer activity within the region. Delays in finalising development projects has affected budgeted revenue and development contributions to date, and are likely to continue to have a negative effect over the balance of the year.”

Copies of the Quarterly Financial Report can be found in the Finance and Performance Committee Agenda on the Council’s website: www.pncc.govt.nz

ENDS

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