The response to demands in such compliance and regulatory areas such as animal control, planning, consenting and policy advice has increased the Rotorua Lakes Council's staff expenditure budget.

'Staff expense is up,” the council says in its operations and monitoring sub-committee report to be presented before councillors tomorrow.

But the council reports its current performance continues to track behind budget in response to a number of external challenges impacting their revenues and expenditure.

'Overall, revenues have performed well against budget in particular Rating,” the council reports.

'However, there remain challenges in parking and landfill.

'Parking revenues are improving but continue to lag budget.

'Revenue for the year, however, is already 100 percent higher than for the same period last year.”

Waste Management revenues have declined because of a number of commercial users reducing their waste volumes. Recyclables are becoming increasing more difficult to on sell.

Offsetting these revenue gains is expenditure greater than budget in the following key areas:

■ One off payment associated with land for siting of Waste Water stations. This cost will be offset once a separate associated land sale has been completed.

■ Additional compliance, supervision and operating costs for the Rotoiti/Rotoma treatment plant.

■ Increased costs for increased stringent water planning requirements. iv) Inner city security patrol costs.

■ Election related communications and support costs. These costs will be offset later in the year when government subsidies are received

■ Electricity – In 2019 Council was adversely affected by continued cost price volatility. This has been somewhat mitigated by entering a fixed price contract from December 2019.

■ Staffing expense is up in response to demands in compliance and regulatory areas e.g Animal control, planning, consenting and policy advice.

■ Depreciation is slightly higher than budget. This is a result of the asset revaluations amounts coming in higher than anticipated.

■ The above challenges are being monitored and managed closely along with tight oversight on expenditure. Through continued financial prudence we forecast to end the financial year on or close to budget.