Council meeting agenda
At their full Council meeting next Wednesday (26 April), elected members will be updated on the organisation’s financial performance for the nine months to 31 March 2023.
As highlighted in previous months’ financial reports to Council, there are several key challenges putting pressure on council’s financial position including costs associated with emergency housing, Plan Change 9, recent weather events, and inflation.
Prudent financial management is a priority for the new Council. In January an operating deficit of $5.6million was expected but this has now been reduced to $2.9million through a series of cost saving initiatives including the deferral of recruitment for vacant roles, delaying or cancelling planned expenditure with contractors and increases in revenue targets to meet the changing market conditions.
Council’s financial position is stabilising as cost saving initiatives have constricted expenditure across the business, and revenue has performed ahead of initial forecasts.
While cost saving measures have been effective in reducing Council’s forecast operating deficit, additional events such as Cyclone Gabrielle have placed significant pressure on budgets.
The operating deficit as at 31 March 2023 is $742k, up from $423k in February 2023, due mainly to costs associated with Cyclone Gabrielle.
Within the $25.8m year-to-date deficit shown for March, $24.1m relates to the receipt of subsidies attached to capital projects and $947k relates to lower than budgeted capital revenue from developers, leaving $742k as the current operational deficit.
Council staff remain committed to cost saving initiatives designed to deliver a full year operating result within the approved Annual Plan budget and controls remain in place to restrict Council expenditure for the remainder of the financial year.
Any residual operational deficit will be offset against underspends in capital renewals as approved by Council on the meeting on 29 March 2023.
Go to page 15 of the meeting agenda to read the full financial report.
The meeting, which starts at 9.30am in the Council Chamber and is open to the public to attend, will also be livestreamed and you can watch live or later via Council’s YouTube channel HERE.