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Home / Rotorua Daily Post

Council spending under microscope

By Daniel O'Mahony
Rotorua Daily Post·
15 Jun, 2015 11:00 PM2 mins to read

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Councillor Karen Hunt

Councillor Karen Hunt

Rotorua Lakes Council could reduce its debt even a proposed capital spending programme is stuck to, because it is unlikely every project will be fulfilled, its chief financial officer says.

In yesterday's first session of deliberations on the council's proposed Long-term Plan, Thomas Colle told councillors an "optimistic' target of 90 per cent of planned capital spending would result in budget savings of about $37 million over the next 10 years.

Savings made on unfulfilled capital funding projects could be used for other programmes, Mr Colle said - or they could be used to service council debt.

Council debt currently stands at $148.8 million.

The biggest challenge for the community is that they want to know what the budget is and what the budget is going to be spent on.

Councillor Karen Hunt
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This is set to increase to $205 million under full implementation of the proposed 10-year plan.

Debt was a recurring theme in a number of the Long-term Plan submissions, with many submitters adamant the council's priority should be to reduce its current debt by curtailing new capital expenditure.

Council chief executive Geoff Williams said he had never seen a capital works programme achieved in its entirety, and the nature of unpredictable long-term projects often meant there was "a bit more money in the bank" than expected.

Councillor Karen Hunt echoed a number of her colleagues when she suggested Rotorua ratepayers needed to be informed about all the possible implications of spending projects.

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"The biggest challenge for the community is that they want to know what the budget is and what the budget is going to be spent [on]," she said.

Deliberations on the Long-term Plan continue today from 9.30am-5pm, and tomorrow from 9.30am-3pm.

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