Budget shortfall likely for council

18:56, Jul 21 2014

The Waimate District Council is predicting it will be down $214,000 on its budget at the end of the financial year, according to a recent financial report.

The report was tabled by Waimate District Council chief financial officer Graham Durston at the council meeting on Tuesday.

Durston said May was a "turnaround" with a greater Ministry of Health subsidy confirmed and with an insurance payout of $128,000 on the damaged Horgans Rd forestry block also expected.

He said $181,000 in legal costs against a budget of $40,000 had also affected the council's forecast.

The council has recorded a surplus of $627,000 for the 11 months to May 31, with a budgeted surplus of $292,000. Overall, council is above budget by $335,000 as at May 31.

The council's Ministry of Health subsidy came in at $591,000, $134,000 more than the budgeted $457,000 for the year to date.


While that makes up the bulk of the surplus, development and financial contributions were $130,000 compared with a budget of $65,000, and general rates collected for the 11 months to May 31 were $5.301 million, compared with a budget of $5.265m, a difference of $36,000. Income from an NZ Transport Agency subsidy came in at $1.807m to May 31, against a budget of $2.073m.

In his report, Durston said he expected to be down $200,000 on capital expenditure while total expenditure, including emergency work on the district's roads and bridges, was expected to be $310,000 above budget.

Total council operating income for the 11 months to May 31 was $12.813m against a budget of $12.620m.

The council's total expenditure to May 31 was $12.186m against a budget of $12.328m, a surplus of $142,000.

Employment expenses were $2.985m compared with a budget of $2.945m, while depreciation was $3.727m compared with a budgeted $3.670m. Roading expenses were $1.974m, $56,000 above the budgeted $1.918m.

The Timaru Herald