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The Covid-19 lockdown was in part responsible for the more than $8million shortfall in the Dunedin City Council’s revenue last year, council documents show.
Reports to be tabled at today’s finance and council controlled organisations committee meeting show an $8.323million unfavourable difference from a budgeted $317.019million revenue.
The council’s actual revenue of $308.696million was buoyed by an unbudgeted dividend from Civic Assurance and unbudgeted revenue from the Provincial Growth Fund for economic development initiatives, the department of finance’s financial result for the year ended June 30 says.
The full year unfavourable revenue variance included the impact of the national lockdown "with a number of operating units recording little or no income in the month of April, flowing into May".
Waste and environmental revenue was down $3.402million, largely due to lower use of the Green Island landfill.
Parking operations revenue was down $2.75million, due to delays in bringing about the new parking pricing structure at the start of the financial year, and the budget being over-optimistic with respect to additional income from this pricing structure.
The variance also included the impact of providing free parking through, and then following, lockdown, the report says.
Grants revenue was also less than budgeted due to the lower than expected capital spending on roading projects, it says.
Total spending for the year was $313.239million or $1.025million over budget.
Personnel costs at $67.488million, against a budget of $64.973 million, were the largest unfavourable variance at $2.515million over budget.
The full-year variance reflected added staffing and staffing costs required to support the delivery of the second-generation district plan and to process a higher than expected number of building consents.
The overspend was also due to a reduction in annual leave taken across the organisation due to lockdown resulting in a higher than expected accrued leave at the end of the financial year, the report says.