The Council has recorded a controllable surplus of $3.8m in the period to 31 March 2015.
Chief executive officer Paddy Clifford says several factors contributed to the variance including a continuing reduced call for some expenditure, particularly maintenance-related with no adverse weather events; the delay of some planned expenditure; a reduced need for professional service costs in some areas; and, some grants not being incurred to date.
"The third quarter has seen the controllable surplus increase," says Mr Clifford. "In the remaining quarter of the financial year I expect some of the budgeted expenditure will be incurred. Part of the reduced call for some expenditure has been applied to absorb unplanned expenditure however we now expect part of the surplus will remain to year end, particularly that relating to interest expense savings due to lower levels of debt, provided no adverse events occur."
Chief financial officer Grant Elliott says it is further progress building on the good start to the 2014/15 financial year.
"It is further evidence of the focus of Council management and officers on expenditure reduction while still delivering the services required by our community."
Financial accountant Keith Allan told Councillors at today's Finance and Performance Committee meeting that Capital Expenditure programmes valued at $13.0m have been incurred against the overall capital programme budget for the year of $44.2m.
Keith Allan says this pattern of expenditure is similar to previous years, reflecting the planning necessary before work can commence. "It is apparent that due to external factors there will be significant programmes unable to be completed in the current year," he said. "These include the redevelopment of Papaioea Place social housing, seismic strengthening of Council buildings including some Wastewater Plant, development of a new bore for Kelvin Grove water supply, the Turitea Valley Road and Pacific Drive new water supply link and reservoir and Ashhurst replacement water reservoir."
"The current level of debt is below that budgeted due to the lower level of capital expenditure than budgeted," Mr Elliott said
Copies of the Financial Report can be found in the Finance and Performance Committee Agenda at pncc.govt.nz.
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Palmerston North City Council
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