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Lockdown budget blow By Sue Newman
sue.n@theguardian.co.nz
Four weeks of Covid-19 lockdown have carved more than $570,000 off the Ashburton District Council’s income and those numbers are climbing each week facilities are closed. With two months of the financial year to run and life far from back to business as normal, it is very clear the council will not have a balanced budget this year, mayor Neil Brown said.
At yesterday’s Covid-19 Response Committee meeting, Brown told councillors that while the council had lost income, it still had money coming in. While there might be delays in some of its subsidies, grants and some rates payments, that money would still come, he said. “If this is our monthly loss, others will have had more than that. We’re part of the picture, but others will have taken a much bigger hit.”
The biggest contributor to the council’s lost income has been from the closure of the EA Networks Centre. In April lost revenue totalled $200,000. More than $80,000 has been lost in building consent and inspection work and $30,000 in planning and LIM requests. Another $50,000 was not generated through the Resource Recovery Park. The shutdown of many council activities did, however, generate a small pool of possible savings,
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around $140,000, creating a net loss of around $430,000 for the month. In a report, council business support group manager Paul Brake said the lost income was a best estimate and only included significant variances. “In addition the losses are only for a lockdown period of four weeks. Losses will increase if all council operations cannot resume promptly,” he said. For each week the EA Networks
Centre is closed, there is a $50,000 shortfall in council income. The lockdown has also impacted on three significant council projects and that is likely to result in a variation claim that will add to the total cost of each project. The average monthly claim for the CBD redevelopment is $450,000, the River Crossing pipeline, $430,000 and the Ashburton pump station project, $180,000, a total of more than $1 million per month.
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