22 April 2013

Council Reports Budget Surplus For Third Quarter

The Palmerston North City Council has recorded a favourable operating position of $2.1million for the first nine months of the 2012/13 financial year.

Chief executive Paddy Clifford said the favourable result is welcome however the drought resulted in significant challenges, particularly in the wastewater and water activities due to higher chemical costs and water restrictions.

“These pressures on services and uncertain revenue mean we remain focussed on making savings wherever possible. These plus operations being dominated by subdued growth mean we continue to strive towards meeting allocated operating budget which we are now confident of achieving.

Chief financial officer Grant Elliott said the lower level of expenses than predicted needs to be considered in the context of the whole year.

“We are confident that Council will be in a favourable position against its full year controllable operating budget. To date, Council infrastructure has not been affected by an adverse weather event and with some scheduled payments yet to be made lower expenses have been incurred.”

Grant Elliot says “It is important to note that the Waste Water Treatment Plant action plan has been fully incorporated into Council’s budget and that some parts have been deferred from that intended.”

“Despite the predicted surplus we will continue to restrict spending and look for the most economical way to deliver our services to fulfil our organisation goal of being financially responsible.”

Financial accountant Keith Allan told Councillors at this afternoon’s Finance and Performance Committee meeting that overall forward looking economic indicators continue to remain positive.

The year’s Capital Expenditure programme has seen $12.2million incurred in the year to date against a budget of $22.8million. The overall capital programme budget for the year is $32million however due to delays in commencing programmes this is unlikely to all be incurred in the current financial year. This, and earlier receipt of development contributions exceeding budget, has assisted in reducing debt below that at 30 June 2012.

Copies of the Quarterly Financial Report can be found in the Finance and Performance Committee Agenda at pncc.govt.nz.

ENDS

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