Budget short by $1.8M

Press, 19 December 1989, Page 7

Budget short by $1.8M

The Christchurch City Council has $l.B million unbudgeted for in this financial year. This includes $360,000 for councillor remuneration from November, 1989, to March, 1990, and $530,000 for October’s local body election. Councils merging into the new city opted to fund these items in the new city’s 1990-1991 budget. The costs of creating the new city are higher than expected. At November 30, $120,794 more in transition expenses than those budgeted for by merging councils had been incurred. The council’s group manager, finance, Mr Bob Lineham, reported the following unbudgeted items to last evening’s council meeting: • Elections: $530,000. • Transition costs: $120,794. • Elected member remuneration: $360,000.

• Watersider redundancy on shares held in the Lyttelton Port Company: $296,289. • Petroleum tax revenue over-estimated: $87,000. • Airport dividend revenue not received: $417,000. They total $1,811,083. Mr Lineham also noted service centre costs of $133,150, likely to rise to about $260,000. The former City Council held a capital development reserve designated to fund these costs, he said. Mr Lineham said he expected each of the merging councils to meet their budgets to March, 1990. Items such as the election and councillor costs were always intended to be met in the first full rating year of the new year in 1990-1991. An updated report on financing the items will be made to the council in February.