Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search

 


Significant debt reduction achieved

18 August 2014

Significant debt reduction achieved

Palmerston North City Council has maintained an operating budget surplus for the 2013/14 financial year ended 30 June and paid down more debt than planned.

The Council finished the year with a controllable surplus of $4,762,000 however $520,000 of that has been carried forward into the 2014/15 financial year.

Chief executive officer Paddy Clifford says the variance has occurred because of a reduced call for some expenditure, particularly maintenance related with no adverse weather events, the delay of some planned expenditure (for both external and internal reasons), a reduced need for professional service costs, and some grants not being incurred.

We had expected some of our major projects to have either been fully or at least partially incurred thereby reducing the favourable variance reported on at the third quarter of the 2013/14 financial year. “However,” says Mr Clifford, “this only occurred to a limited extent.’

An additional $9,113,000 was available for debt reduction on top of the budgeted $3,632,000.

“This is very pleasing. However, it’s important to note that debt levels will increase as those projects, particularly capital, which have been carried forward are incurred in the new financial year.”

Chief financial officer Grant Elliott says the 2013/14 financial year has been good for Council.

"Council's debt level is significantly lower and reduced debt means reduced interest costs. This, alongside the reduced call for some budgeted expenditure, particularly maintenance related, lower grants and professional service mean Council is on a sounder financial footing as we enter a new financial year."

"While many of the reasons for the surplus are external I do want to highlight the fact that Council management and officers are focused on expenditure reduction and I am proud of their efforts which are having an impact while still delivering the services required.”

Financial accountant Keith Allan told Councillors at today's Finance and Performance Committee meeting that Capital Expenditure programmes valued at $23.9m have been incurred against the overall capital programme budget for the year of $38.6m.

The carry forward includes: Papaioea social housing project; Supporting infrastructure for the Lido Pool hydro slide project; Wildbase Recovery; seismic strengthening of Council owned buildings; Turitea Valley/ Pacific Drive new water supply; Longburn wastewater connection; Ashhurst wastewater treatment (possible pond lining); waste minimisation community facility to assist diverting waste from landfill; major upgrade of Main Street Bus Terminal; and, the Manawatū River Shared Pathway (Ashhurst to Riverside Drive).

Keith Allan says the amount available from operations for debt reduction was reduced by debt incurred to fund new capital expenditure to give a net $3.4m reduction compared with a budgeted increase of $16.1m.

It is important to note that when these projects are carried out debt levels will increase as they are intergenerational programmes that are partly funded by debt and paid off over time – rather than being paid for by the current generation of ratepayers.

Copies of the Financial Report can be found in the Finance and Performance Committee Agenda at pncc.govt.nz.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

TV3 Videos: Key's Flip-Flop Over Whale Oil Texts | Slater
Reaction: Greens | More
Dim-Post Link: The Very Odd Slightly Left Of Centre

Gordon Campbell: On Government Arrogance

Right now, National is ramming anti-terrorism measures through Parliament. This legislation will grant the SIS the power to carry out 48 hour bouts of surveillance on anyone without a warrant, and will bestow on government the power to unilaterally revoke anyone’s passports and thus deny them the freedom to travel.

Ludicrously, the public has been given exactly one day to make submissions on these major infringements of their civil liberties. Despite Finlayson’s misleading signals on RNZ that these are only stopgaps until next year’s full review of our security laws, the measures in question will not, in fact, expire until 2018.

Why the insane rush? Good question. More>>

 
 

Parliament Today:

Key Texts With Whale Oil Released: PM Can’t Be Trusted Over Dirty Politics Defence - Greens

John Key’s answers to questions about dirty politics can’t be trusted, after he was forced to admit that he had misled journalists and Parliament about contact with attack blogger Cameron Slater, said the Green Party today.. More>>

ALSO:

Temporary Release Crackdown Continues: Corrections Review Of Phillip Smith Case

“The review by Corrections’ Chief Custodial Officer reveals that the plan for Smith’s series of temporary releases was overly ambitious and misinformed. He’s a highly manipulative and deceptive person who although technically eligible, should not have been considered for temporary release." More>>

ALSO:

White Ribbon Day: Govt Resumes Sexual Violence Trial Proceedings Work

Justice Minister Amy Adams has asked the Law Commission to resume work on proposals for better supporting victims of sexual violence through the criminal process. The Law Commission will revisit its previous work on alternative pre-trial and trial processes to identify options for improving complainants’ experience in court. More>>

ALSO:

"New Faces, Wise Heads": Andrew Little Announces New Labour Line Up

Labour Leader Andrew Little today announced a bold new caucus line up which brings forward new talent and draws on the party’s depth of experience. More>>

ALSO:

Gordon Campbell: On Rick Ellis As Te Papa’s New CEO

The recent appointment of former TVNZ boss Rick Ellis to head Te Papa has copped a fair bit of criticism. Much of it has been inspired by the suspicion that Ellis has been hired to pursue the same purely commercial goals as he did at TVNZ, while similarly neglecting the serious cultural side of his mandate. More>>

Passport Cancellation, Surveillance: Draft 'Foreign Fighters Legislation' Released

The final draft of the Countering Terrorist Fighters Legislation Bill contains proposals previously announced by Mr Key in a major national security speech earlier this month. More>>

ALSO:

Related

Joint Statement: Establishment Of NZ-China Strategic Partnership

At the invitation of Governor-General Lt Gen The Rt Hon Sir Jerry Mateparae and Prime Minister The Rt Hon John Key of New Zealand, President Xi Jinping of the People’s Republic of China made a state visit to New Zealand from 19 to 21 November 2014... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Regional
Search Scoop  
 
 
Powered by Vodafone
NZ independent news