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Management
Accountant, Susan McNamara was in attendance for this item.
Financial Report for the period ended 30
September 2015, prepared by Ms Susan McNamara (Management Accountant), was
tabled.
Ms McNamara informed the report outlined
the financial results to 30 September 2015.
It was pointed out to the Committee 25%
of the financial year is complete and that no issues have been identified
that raise concerns for Council.
Ms McNamara then spoke on matters
relating to the income, operating expenditure, capital expenditure, roading
and transport, chief executive and balance sheet.
Ms McNamara reported roading and
transport are forecasting that capital expenditure will be under budget at
the end of the year.
Ms McNamara explained this variance is
partly caused by a significant drop in the bitumen index over the last three
months, along with the expectation that the Southern Scenic Route extension
and Mararoa Bridge projects will be deferred to the 2016/2017 financial year.
Councillor Kremer queried the delay of
Mararoa Bridge project.
Mr Marshall responded a business case has
been presented to New Zealand Transport Agency (NZTA) and requires their
approval prior to their allocation of funds toward this project. He added Council
has yet to receive a response from NZTA.
In regard to term deposits Councillor
Bailey noted Council currently has $6.0M invested in four term deposits
ranging from three to six months maturities with interest rates varying at
3.3% to 4.05% per annum and queried if Council is limited to which banks it
can invest at.
Mrs McNamara confirmed Council holds a
list of approved New Zealand registered banks.
In regard to The Around the Mountains
Cycle Trail projects held within the Chief Executive budget Councillor Baird
expressed concern that the costings for this project are escalating and
queried when the total costings are to be disclosed to the public.
In response Mayor Tong advised a report
is being prepared by the Chief Executive on this matter which will be
presented to the Committee in due course.
Councillor Bailey reiterated that until
the final costings including the legal challenges are available then a report
will be made available to the public.
Councillor Kremer sought confirmation
from staff that until the monetary side is sorted no further work is to be
undertaken.
In his response Mr Marshall advised that
whilst work has ceased until the results of the Environmental Court are
resolved there are contractual payments to be made.
Council Kremer requested an analysis on
what payments are outstanding be made available to the Committee. It was
agreed Finance Staff action this request.
At this point Councillor Baird raised the
issue of a possible procedural issue that he has raised with the Chief
Executive, however noting his absence at this meeting, that may have occurred
at the Council 15 May 2013 meeting when Council moved into Public Excluded to
discuss a report presented by staff concerning the Around the Mountain Cycle
Trail project with the recommendation to proceed with and to guarantee
$4million of ratepayers monies toward this project. He added this report was
presented twelve days prior to hearing submissions to the Draft Annual Plan
2013/2014, which included this item.
Mr Halligan responded advising he was
unaware of any procedural breeches with processes to date, however notes
Councillor Baird’s comments about the overall costs and Councillor
Kremer’s request for further information.
Both issues to be followed up by staff.
Councillor Baird sought a response from
staff to clarify if a procedural issue has occurred.
Mr Halligan confirmed this matter will be
investigated by staff and a response will be forthcoming to the Committee.
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