Manawatu¯ council’s work $2.8m over budget

Budget blowouts at the Manawatu¯ District Council have reached $2.8 million after 15 projects were found to be in arrears.

Despite the variances, councillors were mostly pleased with the council’s spending for the past 12 months after its financial accounts were presented at a recent meeting. Although the council isn’t required to release the information, chief executive Richard Templer said it was important to be transparent.

The organisation had a yearly revenue of more than $50m and budget discrepancies were not unexpected, he said. ‘‘Variances are just a natural part of life.’’

Manawatu¯ ’s roading network put the biggest dent in the public purse, with officials spending $674,000 over budget.

Building control took the second largest hit, with the books $618,000 in arrears.

In a report to the council, chief financial officer Amanda Calman said the overspend was due to higher support costs and staff time. The council was also forced to hire more consultants to cope with the swelling demand for housing.

Following closely behind was the Feilding wastewater treatment plant, which spent $347,000 more than forecast on laboratory equipment, consent monitoring and electricity. It also had higher staffing costs at the planting nursery.

Disposal to landfill caused some financial headaches, with higher volumes of commercial waste making a $218,000 dent in the budget.

Councillor Stuart Campbell, a chartered accountant by trade, said it was vital the council got its budgets as close to the actual spend as possible.

Although the council’s spending ‘‘wasn’t too bad’’, he said there were a few projects and departments that ‘‘weren’t so good’’.

‘‘I accept that when you are setting budgets there are going to be unknowns.

‘‘We need to take more care.’’