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THURSDAY, DECEMBER 17, 1987
RC'S FINANCIAL POSITION SOUND AND HEALTHY
THE REGIONAL COUNCIL HAS ESTIMATED A SURPLUS OF $162 MILLION FOR 1987-88, SOME $97 MILLION HIGHER THAN THE ORIGINAL FORECAST, IT WAS REVEALED AT THE COUNCIL'S FINANCE AND ADMINISTRATION SELECT COMMITTEE MEETING TODAY (THURSDAY).
ESTIMATED REVENUE FOR 1988-89 WOULD STAND AT $1,631 MILLION WHILE ESTIMATED EXPENDITURE WOULD BE IN THE REGION OF $1,253 MILLION, RESULTING IN A BUDGETED SURPLUS OF ABOUT $378 MILLION.
AND THE COUNCIL'S RESERVE WAS EXPECTED TO INCREASE FURTHER FROM $254 MILLION TO $416 MILLION BY MARCH 31, 1988.
COMMITTEE MEMBERS NOTED THAT THE COUNCIL'S TOTAL REVENUE FOR THE CURRENT FINANCIAL YEAR WOULD
BE $1,099.9 MILLION WHILE TOTAL EXPENDITURE WOULD BE $937.9 MILLION.
THE COUNCIL'S MAJOR SOURCES OF INCOME HAD COME FROM RATES AND INVESTMENT OF ITS SURPLUS. THE OUTTURN FORECAST OF RATES FOR THE YEAR UNDER REVIEW WAS $940 MILLION WHILE INVESTMENT HAD YIELDED $24 MILLION. THE BALANCE OF REVENUE CAME FROM FERS AND CHARGES THE COUNCIL COLLECTED IN THE PROVISION OF SERVICES AND ACTIVITIES.
COMMITTEE MEMBERS WERE TOLD THAT FOR THE COMING FINANCIAL YEAR, THE FORECAST OF INCOME FROM RATES WOULD BE $1,168 MILLION AND INVESTMENT INCOME WOULD AMOUNT TO $39.8 MILLION, CALCULATED AT AN ASSUMED INTEREST RATE OF 4.5 PER CENT PER ANNUM.
THERE WOULD ALSO BE AN ANNUAL GRANT OF $273.6 MILLION FROM THE GOVERNMENT FOR EACH OF THE THREE YEARS FROM 1988-89 TO 1990-91 UNDER A NEW FINANCIAL ARRANGEMENT BETWEEN THE COUNCIL AND THE GOVERNMENT.
THE ESTIMATES WHICH WERE APPROVED BY THE COMMITTEE WOULD BE SUBMITTED TO THE FULL COUNCIL FOR ENDORSEMENT WHEN IT MEETS ON DECEMBER 22 (TUESDAY).
TODAY'S MEETING WAS PRESIDED OVER BY MR NATHAN MA.
THE
COMMITTEE
V.
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CHAIRMAN,