'Swings and roundabouts' for Council's Annual Plan - 26/01/2007It's a case of 'swings and roundabouts' for Wanganui District Council's Annual Plan, with some unbudgeted expenditure being offset by cost savings and additional income.
On Monday, January 29, Chief Financial Officer Julian Harkness will update the Council on changes to the budget.
The Council's 50% share of the Wanganui Airport runway repairs is now budgeted to cost $500,000-$550,000. Depending on contingencies, this is an expected saving of $200,000-$250,000 on the budgeted amount. The main reason for the saving is that the repairs will be done with a triple coat seal rather than asphalt.
The riverbank walkway contract has been awarded for $1,853,367, an increase of $328,367 on the budget. The project was initially going to be loan funded for $1.3M but because the Council Development Contribution Funds can be used, the loan funding will only be $0.3M. Interest savings on a smaller loan are expected to be $70,000 a year, giving a net increase for 2006/07 of $258,367.
Earlier in the year the Council decided to underwrite the Boxing Day concert at Cooks Gardens. As the concert was not profitable, there is $70,000 expenditure which is not in the Plan.
Transport Minister Annette King has approved the release of funds of $805,883 for the Airport that were held in trust by Treadwell Gordon. While the $805,883 is included in the Annual Plan, the interest on the funds of $75,000 is not.
$250,000 from airport runway
$75,000 from Airport funds
$258,367 for riverfront development
$70,000 for Boxing Day concert
There will be a net reduction of $1M in the Council's debt as a result of reducing loan funding for the riverfront project.