Next Tuesday 28 May Council will receive the quarterly performance report which measures how the yearly budget is travelling against forecast figures and this quarter sees a $393,000 improvement which will reduce the projected deficit for the 2012/2013 financial year.

Whilst this is not a material improvement it means Council has been able to reduce the deficit. Council has to undertake significant reform if it is to get back into surplus. This has been proposed in the 2013-2017 draft Delivery Plan which outlines the necessary initiatives which include budget cuts. The draft Plan is currently on public exhibition and will go to Council on the 18 June 2013.

City Assets Director and Chief Financial Officer STEVE EDMONDS says improving return from commercial businesses is just one strategy essential to securing Council’s long term financial position.

Additional strategies implemented in September last year are making an impact with almost $230,000 in improved recovery strategies and higher investment returns. These better than anticipated results have been marginally offset by a slow down in income from development assessments and lower than anticipated income from swimming pools.

The strategies include an increased focus on sales of redundant or underutilised assets and Council will also consider two reports at Tuesday’s meeting aimed decreasing asset holdings.

“Council officers are recommending the demolition and sale of the former TPI House at 231 King Street, Newcastle as well as the sale of two vacant lots of operational land, 29 and 31 Laman Street, Newcastle.”

“The land in Laman Street was purchased in the ‘70s for possible road extensions, however these plans have not come to fruition so there is no need to continue holding the land.”

“Across Civic Park on the corner of Auckland and King Streets is TPI House which has termite damage and is no longer safe for occupation. The proposal for the site is to demolish the building and amend the land boundary to allow for future road widening or extension of the width of the pathway.”

Council will consider these items at the Ordinary Council Meeting on Tuesday 28 May at 5.30pm. Meetings are held in the Council Chamber, 2^nd floor, Newcastle City Hall.

Read the meeting agenda for Tuesday 28 May.