Council working through budgeting error

FOR IMMEDIATE RELEASE | TUESDAY JUNE 10

Council working through budgeting error

When producing the Enhanced Annual Plan – the budget for this year - there was a significant budgeting error due to a lack of corporate knowledge.

This mistake has been picked up by our new management team, who found not enough money had been allocated in some areas.

It is not expected to affect rate rises this coming year.

At this stage, staff are working hard on what the end of year result will be.

Our new chief executive and executive leadership team are fully aware of the challenges and are focused on bringing back strong financial discipline and responsible management.

Mayor Tania Gibson said a new leadership team was in place. Their full focus was on the budget.

“We are firmly focused moving forward on core infrastructure.”

Areas most affected by this budgeting error include infrastructure operating costs, electricity and some employee costs.

The finance department – now fully staffed for the first time in 12 months - will require more time to understand the full picture and likely funding implications.