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Local board projects deferred to limit rates rises

Media release
24 September 2014

Local board projects deferred to limit rates rises

Local board capital expenditure projects totalling $30 million for the year 2014-2015 have been deferred by the council’s Finance and Performance Committee.

Deferrals amounting to $35 million were proposed by staff in August but councillors requested they be referred to local boards for review.

The boards came back with proposals to limit referrals to $21 million but staff recommended $30 million, which was approved by the committee today.

The local board deferrals are part of a wider council programme to reduce expenditure and keep rates rises to 2.5 per cent next year.

Most of the local boards asked that deferred projects received priority funding in the 2015-2016 year. Councillors voted to reconsider all local deferrals as part of the draft Long-term Plan deliberations and project reprioritisation.

Committee chair Penny Webster said: "This is all part of the regular financial management of council’s capital delivery programme. The number of planned projects on the books each year often exceeds the council’s capacity for delivery.

"There is always a proportion of capital projects that aren’t delivered in the timeframe that was originally planned for. No projects will be deferred where council is contractually or legally committed."

She added: “The Long-term Plan process, deciding the council’s 10-year budget for 2015-2025, will provide the opportunity for community input on the importance of projects identified by local boards as priorities.”

The committee also agreed to defer regional projects totalling $72 million.

ENDS

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