The cost of abolishing Palmerston North's $40 parking fine for failing to activate the meter correctly has yet to hurt the city council's books.
From December 1 last year, the fine was removed and motorists who key in the wrong bay number or fail to pay, now receive the same $12 ticket as parking overstayers.
The change was expected to slice up to $600,000 a year from the council's income.
However, the impact had not begun to filter through at the council's quarterly review of financial performance to the end of December. Financial accountant Keith Allan said people had plenty of time to pay and some infringements were referred to the courts to be collected, meaning it could take up to six months for fines money to come through.
"The actual cash impact is delayed."
Chief executive Paddy Clifford said the lag was one of several factors contributing to a $3.2 million operating surplus halfway through the financial year.
He said the parking fines change had been well received by the public. "While the full effects of the change won't be known until later in the year, it is likely most of the reduction, in this financial year, will be absorbed by council."
The healthy cashflow was helped along by the absence of any extreme weather requiring cleanups from the maintenance budget, and by delays in getting some projects started, meaning less borrowing and lower interest payments.
"While I'm pleased with the result to date, I am conscious the variance will reduce over the remainder of the year."
Chief financial officer Grant Elliott said one of the projects that would start to erode the operating surplus would be the wastewater pond desludging project that was now under way at the Totara Rd plant. There was $480,000 in this year's annual plan for the work.
There were also unallocated grants that were starting to be paid out.
Mr Elliott said council staff were aware of the need to continue focusing on restricting spending and looking for the most economical way to deliver services to ratepayers.
Mr Allan told councillors at the finance and performance committee meeting yesterday that capital spending stood at $9m at the end of December, instead of the $14.3m that was planned.
The overall capital programme budget for the year is $38m.
Two of the large projects that have not begun include the Papaioea Place housing redevelopment ($3m) and regional bus terminal ($250,000).
They were still expected to begin this financial year but at least some of the spending would be carried over into the 2014-15 financial year.
Source: Manawatū Standard
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