MEDIA RELEASE

15 February 2016

December Quarter Maintains Satisfactory Start to the Year

Palmerston North City Council has maintained an operating budget surplus for the second quarter of the 2015/16 financial year.

The Council has recorded a controllable surplus of $1.4m more than planned in the six months to 31 December 2015.

PNCC Chief Executive Officer Paddy Clifford says several factors contributed to the surplus.

“Some of the spending this quarter was delayed from the previous quarter but it has been offset by other savings,” he says.

“Interest paid on Council borrowing has fallen and we have benefited from lower insurance costs and increased revenue from things like New Zealand Transport Agency funding, parking fees and rubbish bags,” Mr Clifford says.

Financial Accountant Keith Allan told Councillors at today's Finance and Performance Committee meeting that Capital Expenditure programmes valued at $12.4m have been incurred against the overall capital programme budget for the year of $51.7m.

“The Council is around 50 per cent ahead in terms of the amount of work it has completed compared to the same time last year”, he says.

Chief Financial Officer Grant Elliott says the result follows a good start to the 2015/16 financial year.

“Net debt has increased slightly from 30 June 2015 however remains at levels below those budgeted,” he says.

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