GDC balances the books

Roading affects finances as revenue slightly down, expenditure slightly higher, but capital expenditure favourable.

Roading affects finances as revenue slightly down, expenditure slightly higher, but capital expenditure favourable.

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OPERATING revenue was slightly down and expenditure slightly higher for the first half of Gisborne District Council’s financial year, the performance audit and risk committee was told in an overview of the council’s finances to the end of December.

Financial services accountant Lucy Sherratt said operating revenue at $11.4 million was $360,000 under budget while operating expenditure of $41.9m was $309,000 over budget.

The operating deficit of $4.5m showed an unfavourable variance of $640,000 but the capital expenditure of $9.2m was favourable by $603,000.

The council’s net external debt for the year was on track at $33.7m against a budget of $35m.

Operations group manager Barry Vryenhoek said that roading was a challenge; it was largely responsible for the variations in operating revenue and expenditure.

Great deal of roading work

A lot of roading work was done at this time of the year with the new Tairawhiti Roads. Some of it was getting the claims for work in.

Bill Burdett asked where the savings claimed by the Mayor because of Tairawhiti Roads were.

Mr Vryenhoek said this was more a phasing issue. The question to be asked was what was the work programme, and was the “tempo” around it correctly budgeted for. Also, was the council getting its claims to the NZ Transport Agency to get the 60 percent government share back quickly enough?

Mr Vryenhoek said the council did get its claim into the NZTA quickly enough.

Roger Haisman said the savings to be made from Tairawhiti Roads were for tenders, not operational costs.

Mr Vryenhoek said most of the savings were being made in the NZTA part of the programme.

Later in the meeting the council was told that outstanding Maori land rates were $4.3m and outstanding general land debt totalled $2.1m.

The outstanding total recoverable land rates debt was down by $301,000 from the previous quarter.

Mr Burdett said that 80 percent of the debt for Maori land was penalties.

As he had said earlier, the manuka honey industry was thriving but it was not easy to get these rates.

Mr Haisman said if people wanted services up the Coast, they should pay their rates.

OPERATING revenue was slightly down and expenditure slightly higher for the first half of Gisborne District Council’s financial year, the performance audit and risk committee was told in an overview of the council’s finances to the end of December.

Financial services accountant Lucy Sherratt said operating revenue at $11.4 million was $360,000 under budget while operating expenditure of $41.9m was $309,000 over budget.

The operating deficit of $4.5m showed an unfavourable variance of $640,000 but the capital expenditure of $9.2m was favourable by $603,000.

The council’s net external debt for the year was on track at $33.7m against a budget of $35m.

Operations group manager Barry Vryenhoek said that roading was a challenge; it was largely responsible for the variations in operating revenue and expenditure.

Great deal of roading work

A lot of roading work was done at this time of the year with the new Tairawhiti Roads. Some of it was getting the claims for work in.

Bill Burdett asked where the savings claimed by the Mayor because of Tairawhiti Roads were.

Mr Vryenhoek said this was more a phasing issue. The question to be asked was what was the work programme, and was the “tempo” around it correctly budgeted for. Also, was the council getting its claims to the NZ Transport Agency to get the 60 percent government share back quickly enough?

Mr Vryenhoek said the council did get its claim into the NZTA quickly enough.

Roger Haisman said the savings to be made from Tairawhiti Roads were for tenders, not operational costs.

Mr Vryenhoek said most of the savings were being made in the NZTA part of the programme.

Later in the meeting the council was told that outstanding Maori land rates were $4.3m and outstanding general land debt totalled $2.1m.

The outstanding total recoverable land rates debt was down by $301,000 from the previous quarter.

Mr Burdett said that 80 percent of the debt for Maori land was penalties.

As he had said earlier, the manuka honey industry was thriving but it was not easy to get these rates.

Mr Haisman said if people wanted services up the Coast, they should pay their rates.

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