ICC tracking ahead of financial forecast

The Invercargill City Council is tracking ahead of where it expected to be financially.

Council’s acting director of finance Dave Foster provided a report at the finance and policy meeting yesterday which outlined the council’s financial performance for the first financial quarter ending September 30.

Council is showing a $37.8 million surplus, up from the forecasted $36.8m.

The total revenue for the year to date is $1.5m higher than forecasted.

The report says the increased revenue is on the back of receiving $500,000 more form the New Zealand Transport Agency for roading, a $300,000 dividend from Civic Financial Services, and an additional $400,000 in fees received on the back of a higher level of consents.

However, it has meant operating expenses was $1m higher than forecasted given the higher level of contractors and consultants needed to carry out the extra consents work.

The positive quarterly result came hard on the heels of the council’s credit rating being boosted from AA to AA+ by global company Fitch Ratings.

Council chief executive Clare Hadley welcomed the improved rating.

‘‘In the past 18 months, council officers have implemented a programme which focuses on improved financial performance, keeping elected members informed with better reporting, and increased transparency for the public,’’ Hadley said.

Foster told the finance and policy meeting that Invercargill was ‘‘one of very few councils’’ in New Zealand with the AA+ rating.

He said it had came on the back of low debt and a strong investment portfolio, which was aided by a decision to join the Local Government Funding Agency.

The council had knocked off close to $1m in interest costs which had helped its position, Foster said.

He said the rating boost did not mean a lot in terms of boosting its burrowing options, given there isn’t an advantage at being at AA or AA+.

‘‘. . . council officers have implemented a programme which focuses on improved financial performance . . .’’ Council chief executive Clare Hadley