Operating budget cut

The operating budget of the Cromwell ward for the 2020-21 annual plan has been reduced by $221,000 as a result of Covid-19.

The result of those savings on ratepayers has yet to be finalised, with the board adopting the amendments ahead of them being referred back to the Central Otago District Council.

Council finance manager Jotham Kasibaite told an online meeting of the Cromwell Community Board yesterday projections put before the board in February had now changed.

During the consultation period, and while the country was in lockdown, the executive committee had provided further direction to staff regarding the need to work on a revised proposed 2020-21 annual plan, in an effort to mitigate the economic impact the pandemic would have on ratepayers.

In February 2020 the community board recommended a budget to council that saw an overall increase in the ward rate take of $363,000, after adjustments.

Following the direction to revisit the proposed 2020-21 annual plan figures, staff proposed a revised budget increase of $142,000 to the board.

This represented adjustments totalling $221,000, comprising:

  • $160,000 of Cromwell pool costs carried forward from 2019-20 which came from savings due to the pools being closed during the lockdown;
  • $15,000 of detailed seismic assessment costs that have been postponed to year one of the long-term plan (2021-31);
  • $33,000 in reduced grants as a result of reduced budgets, and;
  • $13,000 of plan consultation costs spread over a three-year period.

 

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