28 April 2010
The current economic climate, reduced income and external funding along with increased levels of asset depreciation have all contributed to Waipa District Council’s significantly reduced forecast net gain for the 2009/10 year.
Originally, the budgeted net gain was $3.3 million, however that figure has now been adjusted in a March reforecast to $57,000.
Council’s Group Manager Business Support Ken Morris says the current forecast is also indicating a deficit for the year end cash general funds position.
“At the moment there is a deficit, however a huge amount of work is going into an April reforecast, including cost saving initiatives in areas such as consultants, power, legal services, training and stationery to ensure we break even on June 30.”
Mr Morris said that decreases in key revenue sources such as Development Contributions and investments had impacted the budget.
“Basically our income is a lot lower than we anticipated, and that combined with the reduction in New Zealand Transport Association (NZTA) funding, increased depreciation on water assets and an increase in costs as a result of bringing forward the District Plan review sees our budget needing immediate savings. We have to live within our means.”
The revised forecast will be presented to the May Council meeting.
--ends--