Tararua District Council's financials showed a slightly unfavourable variance in the first quarter of the financial year. Photo / NZME
Tararua District Council's financials showed a slightly unfavourable variance in the first quarter of the financial year. Photo / NZME
Tararua District Council’s first quarter of the financial year had an unfavourable variance of $200,000, leading to one councillor voicing concerns.
Financial services team leader Sarah Walshe said the variance was made up of a few things.
“We had budgeted to receive our Three Waters funding in the first quarter,”she told councillors at a meeting on Wednesday.
She said there was a slight overspend in water activities around consultants engaged to finalise projects that were part of funding from the Department of Internal Affairs (DIA), but those monies were to be received in the December period.
Roading activities also accounted for the variance, due to the weather events experienced in the Tararua district in the three months from July 1.
The council had made four claims to Waka Kotahi, and was expecting funding of $2.5 million.
Walshe said some of that funding would be operational, some capital, and in the context of the weather events experienced in the district, it was a lot of money coming in.
“So you will see the roading activity not tracking to budget, but then with the weather events we never do see it tracking to budget.”
Walshe said solid waste management also had an unfavourable variance, explaining that this was because of carbon credits being greater than budgeted as part of the annual plan.
The variances around water activity, due to consultants, would be offset with the DIA funding coming in, she said.
“Everything else is tracking quite nicely for the first quarter.”
Anything else that stuck out, Walshe anticipated being on-track come the year end.
She said there were also variances around delays in recruitment and it taking longer than anticipated to fill roles.
Sharon Wards was concerned about the unfavourable variances three months into the financial year. Photo / NZME
Councillor Sharon Wards said she was a “little bit scared” to see the unfavourable variances three months in.
“You’ve given us an explanation, and I was really nervous to see that after three months you’re able to predict that this activity will actually be okay at the end of what the next nine months will hold.”
She said she wanted to be reassured that discussions around annual planning would not be hugely out of step with what the council had in the bank versus what the community was going to be asked to look for.
Wards was also concerned that savings were made because staff hadn’t been appointed.
“That’s effectively where we’re making up, so that’s a little bit of concern for me as well - if the only way we’re keeping our sheet to the wind is because we’re not filling gaps.”
Walshe said that as part of the annual plan process, when the managers did their budgets, they would have the actuals to date.
She said a lot happened in the first quarter, but councillors could expect a more detailed and more accurate report at the six-month mark.
“As to how we’re tracking year end, it’s easier to do it when you’ve got more than just one three-month period.”
Performance surveys had also been unfavourable, but Walshe said the council had met or was meeting 72 per cent of its service measures, slightly up on the 70 per cent for the first quarter last year.
There was a drop in residents using the recycling drop-off, from 82 per cent to 61 per cent, but the uptake of kerb recycling had gone from 22 per cent to 52 per cent, which was seen as positive.
Roading would continue to be a “problem child”, Walshe said, with a lack of understanding in the community around which roads the council was responsible for.
The Saddle Road and the Pahiatua Track were pointed to as journeys residents were least satisfied with, along with potholes.
