Waimairi runs over budget

Press, 13 November 1985, Page 7

Waimairi runs over budget

Present figures indicate that the Waimairi District Council will be $113,715 over budget at the end of the financial year. Waimairi District councillors recommended last evening that cost-cutting measures be taken to balance the books.

Provision for expected wage rises was cited as the main reason for the increased costs.

The Waimairi District Clerk, Mr Peter Chapple, told the council’s finance and policy committee that provision had been made for a 15 per cent increase in wages (apart from those covered by the Higher Salaries Commission) from November 10 to March 31, 1986.

Council staff are covered by the State Services Commission and have been given an interim increase from November 10 of 8 per cent. As recent award settlements have averaged 15 per cent, the calculation of salaries and superannuation for the half-yearly cost statement had been done at 15 per cent.

Mr Chapple said it now appeared likely that staff salaries could rise as much as 18 per cent, which would further offset the budget. Cr Philip Carter said that the overspending should be corrected. There appeared to be factors other than salaries involved.

The budget for Jellie Park Aqualand was showing an expected deficit of $31,000 by the end of the financial year, only a third of which was related to wages, she said. With the likely downturn of the economy next year, it was up to local authorities to ensure that they were not too . ambitious with their programmes, said Cr Carter.

Mr Chapple said that the areas of overspending were being investigated, Heads of departments had been asked to submit cash-flow programmes for next year as well as their estimates. An over-all cash-flow programme could then be drawn up for the council to consider. Such a programme was important with the advent of the goods and ser-

vices tax and high interest rates, he said. Cr Brian Shackel said that the council might have to reconsider manning levels next year. It could use natural attrition as a way of reducing staff levels. Cr Ralph Skjellerup said he would be most concerned if the council had a deficit at the end of the year. The council should try to balance the books before then.

The committee will recommend to the council that staff investigate areas of overspending and ways in which the deficit might be substantially cut ■ Electricity amalgamation Councillors debated the need for consultants’ assistance in the latest amalgamation issue, electricity distribution. Local authorities have been asked to report to the local Government Commission by Christmas on the reorganisation of electricity distribution in metropolitan Christchurch.