The City Council has recorded an improved operating position of $400,000 for the first three months of the current financial year.
Chief Executive Paddy Clifford said that this was a good start to the year, however there are likely to be challenges ahead.
“We’re pleased to be reporting a positive result at this time, but continued pressures on services and falling revenue means staff will have to remain focussed on making savings wherever possible. With the continuing low economic growth we expect another tough year and have made it a priority to strive to meet the allocated operating budget.”
Chief Financial Officer Grant Elliott said the lower revenue than predicted is concerning but needs to be considered in the context of the whole year.
“We remain confident that the full year controllable operating budget will be achieved, but we need to continue focussing on restricting spending and looking for the most economical way to deliver our services”.
In presenting the Council’s first 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 potential effects on revenue streams and developer activity within the region. The fall in building consents issued in the quarter to August may affect budgeted revenue and development contributions over the balance of the year.”
“The year’s Capital Expenditure programme is on track with $3.6 million incurred in the quarter against a budget of $3.4 million. The overall capital programme budget for the year is $49 million” says Keith.
Copies of the Quarterly Financial Report can be found in the 17 October Finance and Performance Committee Agenda