The council applied for and assumed it would receive $10.6 million from the New Zealand Transport Agency (NZTA) throughout the 2008-09 financial year to build, maintain and "rehabilitate" roads.
However, the council yesterday heard it was poised to get $9.8 million from the agency's National Land Transport Programme.
In a tabled report, the council's transportation manager, Denis Mander, said a complicating factor was the introduction of a Government policy statement that sought greater focus on state highways and roads of national importance to stimulate the economy.
However, committee chairman John Mann said the Government's maintenance budget cut was "unsatisfactory".
"We've gone out and consulted and made agreements with the community."
Cr Lex Perkins was critical of the timing of the maintenance cut as many councils had completed their long-term council community plans (LTCCP).
Roading manager Ian Marshall said the reduction meant the council would not be able to deliver the same levels of maintenance.
Chief executive Duncan Field said the council was going to need to recast its LTCCP and make some priorities.
Speaking outside of the committee, Mr Mander said NZTA had set its priorities based on the funding available from central government.
He said changes had always been signalled. There was an increase in NZTA state highway maintenance and improvement funds and the council's applications for road rehabilitations [rebuilding over existing roads] were largely approved.
However, "it was a surprise they reduced the maintenance budgets because it's an asset we hold and it's important to maintain what you've got.
"The message from Government is it wants to see a certain level of tension and are there better ways of doing what we're doing."
Mr Mander said he could not say which projects could be affected. He would make recommendations to the next utilities committee meeting on how to reduce spending.
