Underspending by Drainage Board

Press, 24 July 1986, Page 9

Underspending by Drainage Board

The Christchurch Drainage Board underspent $2.1 million last year, according to the annual accounts tabled at a meeting of the board’s finance committee yesterday.

The accounts showed that budgeted expenditure for the year ended March 31 was $28,394,539. Actual expenditure was $26,259,502. The deputy chairman of the committee, Mrs Judith Bruce, said last evening that the board’s 18 per cent rate increase for the 1986-87 year was justified in the light of the $2 million underspent. The Increase was justified by the rolling capital

works programme, she said. Works budgeted for had not been completed by the end of March, but these had since been finished and paid for from • the estimated funds. The biggest underspending was in the landdrainage capital works and purchases and the . sewerage-area capital works and purchases accounts. Both accounts were underspent more than $700,000. Mrs Bruce said the carry-over from building a filter cover for the Bromley treatment works accounted for a major carry-over. Delays had meant that

$900,000 had not been paid out by the end of the year. There were several other factors contributing to the over-expenditure. Rate revenue exceeded estimate by $490,000 because of a larger carryover than estimated from the previous year, interest received exceeded estimate by $453,737, and sales of property, plant, equipment and miscellaneous items were higher than predicted by $262,224. Mrs Bruce said the board aimed to break even this year, but the budget was variable. At present it appeared to be in an overspending situation.