News, Events and Culture

Council in sound financial position

Monday April 18 2016

Palmerston North City Council has continued to maintain an improved operating position through the third quarter of the financial year.

Photo shows exterior of council building from the Square.

The Council has recorded a controllable budget surplus of $3.4 million more than planned in the nine months to 31 March 2016.
Chief Executive Officer Paddy Clifford says several factors contributed to savings in Council spending, including Palmerston North’s long hot summer.
“The favourable weather has kept adverse event-related maintenance costs to a minimum. However some of those savings have been offset by the need to spend more on water and wastewater treatment.
“Other factors in achieving this surplus include lower interest on Council borrowing and lower insurance and other service delivery costs. Though some planned spending has been delayed, we’ve maintained increased revenue from things like New Zealand Transport Agency funding, parking fees and rubbish bags.”
Financial Accountant Keith Allan told Councillors at today's Finance and Performance Committee meeting that Capital Expenditure programmes valued at $20.4m have been completed against the overall capital programme budget for the year of $51.7m.
“The Council continues to be 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 continues the good pattern established in the 2015/16 financial year.
He added: “This result, along with the lower capital expenditure than budgeted, enabled net debt to decrease slightly from 30 June 2015 and remains at levels below those budgeted.”