The first public assessment of Tauranga City Council finances for the calendar year show the continued effect of high growth levels.
Members of the Audit, Finance, Risk and Monitoring Committee heard the development contribution revenue to the end of December was $22.3 million, which already exceeds the full year budget.
The forecast is for DC revenue to be $13m above budget by year end.
The Treasury Report shows council's total net debt to the end of December was $305m with a full year forecast of $360m.
Overall, the capital spent for the first six months is $44.5m. The full year forecast is for the city to spend $124.8m, which is 79 per cent of budget. Most of the unspent budget is expected to be carried forward to 2017/18.
The full year operating result is projected to be $0.3m in the black due to higher revenue offsetting higher costs. The rates funding requirement for the full year is expected to be as budgeted.
User fee revenue is above budget by $0.8m in water supply from forestry harvesting in the catchment and for building services. In both cases expenditure is also projected to be above budget for the full year.
The council's three reservoir projects are all at different stages.
The Eastern Reservoir is currently in the middle of construction and forecast to be completed in June 2017.
Joyce Road reservoir tenders have been reviewed and additional funding was requested based on the tenders received. Construction has begun and is forecast to be completed next financial year.
Pyes Pa reservoir has commenced earthworks while options around steel or concrete construction of the reservoir are being reviewed. Council has approved a budget revision of $2.2m.
Year to date expenditure on the reservoirs is $4m of a budgeted $7.4m. The city council has approved a revised budget of $14.3m.
2 comments
Good to see ...
Posted on 28-02-2017 13:42 | By morepork
increasing revenue. Hopefully something can be done about the debt levels and then a freeze on Rate increases for a while would be nice...
Someone's been telling Porkies
Posted on 28-02-2017 22:38 | By Murray.Guy
For years Tauranga City Council and sycophants have been telling us how we will all benefit from buoyant economic times and growth. Seems we were lied to as it seems it is largely TCC senior staff and developers who are actually benefitting while the rest of us are subsidizing their increased profits and salaries. With the combination of very low interest rates and massive growth Tauranga City Council should be announcing a 'very achievable' reduction in the average residential rate requirement, NOT the obscene 3.8% increase. Of note is the decision by this Council to rescind the previous hard fought for 2% max rate increase, doubling it to 4%.
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