$2m budgeted for multi-use sports facility

BUDGET: $2 million has been earmarked this year for the proposed multi-use sports facility at Pettigrew Green Arena. PHOTO/FILE

Nearly $2 million has been budgeted this year for the proposed multi-use sports facility - despite numerous delays in getting it approved by Napier City Council.

The project was put on hold by Napier Mayor Bill Dalton last year, who said it would be better for any decisions about the facility to be made by the council elected in the November local body elections.

This new council was expected to make a decision on whether to proceed to the next phase of the project at a council meeting this week. However, the decision was postponed after councillors voiced concern on the proposal.

Earlier this week Mr Dalton said this paper was likely to be brought back to the council later this year for a decision.

Although it is off the agenda for the interim, the council's quarterly report to December 31, 2016 shows $1,884,000 of capital expenditure budgeted for the 'Velodrome' this financial year.

The title 'Velodrome' in the report was not altered when the proposed facility's title was changed to the multi-use sports facility.

Council chief executive Wayne Jack said this budget was required for the construction and resource consent requirements of the project if the council determined it should move ahead.

"The actual construction budget was spread over three years, and proposed spend requirements identified in the year of the spend."

If the project was not approved by council to proceed this financial year, the budgeted amount would be pushed to the 2017/2018 year.

When asked if it was normal process to budget for a project which had not received council approval to proceed, Mr Dalton said it was "absolutely normal, there's nothing out of the ordinary about it" .

"It is normal because it's actually spread over two years and there's a whole lot of accounting reasons for it."

Council Director Corporate Services Adele Henderson said this was normal process as the project had been approved in the Long Term Plan.

"As per the consultation document for the LTP, major projects were to undergo a detailed business case prior to council approving, or not, that the project progress."

The report also revealed $52,331 had been spent on the velodrome in the financial year to date - over budget by $2331.

Mr Jack said this was spent on the $500,000 business case for the facility.

"The business case has been developed over the last year, and this covered a period which extended through two financial years [2015/16 and 2016/17]."

He said the total $500,000 budget for the business case was split between two years, of which $50,000 related to this financial year.

"The $2000 over-run this year is still in line with the overall budget for the business case," he said.

In the quarterly report to September 30, 2016, $13,876 had been spent. This was under the budget of $15,000.