Improved Third Quarter Financial Results for PNCC

The Palmerston North City Council has recorded an improved operating position of $1.9 million better than budget for the first nine months of the current financial year.

Chief Executive Paddy Clifford welcomed the news however he said the result needs to be considered in the context of the full year.

"We're pleased to be reporting a continuation of the positive result at this time, but we don't expect to see a surplus like this at year end. In meeting the challenges of lower revenue than expected we have deferred some expenditure which we are now looking to progress in the final quarter of the financial year. The year so far has been tough but we continue to search for savings wherever possible."

Chief Financial Officer Grant Elliott said the Council had deferred a number of Capital programmes which have reduced the current year borrowing requirement.

"At the nine month point, the year's Capital Expenditure programme was less than planned with $14.8 million incurred against a budget of $25.2 million.  The overall capital programme budget for the year is $49 million however a substantial part of this will now not be spent this year as numerous programmes have been deferred."

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

"Slow economic growth 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."