The Waitaki District Council will carry over $14.5 million of projects it did not complete in the last financial year.
But as it debated the carryover decision, it was warned its funding options for future projects were likely to decrease.
The council has already budgeted another $59m of capital works in 2024-25.
The chairman of the council’s performance, audit and risk committee, Simon Neale, sounded the funding warning as the council deliberated what to do with the projects that did not cross the line in the last financial year.
On Tuesday, Mr Neale said the council was already above its projected budget this financial year and likely to "run out of borrowing capacity" in the next two years.
"You’re being asked today to approve a spend 20% above the budgeted plan ... on a history of not delivering."
Mr Neale said that was not to suggest the council did not proceed with carryovers. But it needed to carefully consider its capacity to shoulder capital expenditure (capex) costs and look at trimming in other areas.
"Surely there must be $10m capex in the next year you could review and then increase the budget," Mr Neale said.
Cr Jeremy Holding asked if $14m of project savings might be found.
Finance and corporate development group manager Paul Hope said it could take "well into the year" for management to understand the delivery timeframes and cost impacts.
Cr Jim Thomson said he understood that had been the practice historically at the council but it could not keep happening.
"I believe we need to be having a mindset change," he said.
"We need to be far more agile.
"Everything that is being carried over, something needs to be cut because we cannot keep going to the well when the well is running dry."
Cr John McCone also said there had to be a cut off.
"We have a budget. We are in debt. Let’s prioritise ... and come back and see what is the next step."
Cr Holding noted some carryover projects such as the Forrester Gallery ($7.6m) and the Waitaki Geopark hub ($1m) were funded externally with other aspects of the budget funded externally.
The Waitaki Events Centre was a case in point: of its total $15m cost, $5m was from rates funding, Cr Holding said.
Chief financial officer Amanda Nicholls said the issue was not necessarily about the council’s internal capacity to do the work.
"In terms of capacity, a lot of the projects are completed by external contractors," she said.
Of the carryover, about $7m was committed for the likes of the rural water mains contracts.
The council believed about $7.5m of carryovers would be completed by June 30 next year; and with the projected 2024-25 capital expenditure, the projects had already been "significantly scaled back".
Ms Nicholls noted the council did not always have a choice. The legislated requirement for water projects was an example.
"I have tried to go back and say, ‘are there some that can be deferred?’ The answer is ‘no’."
Cr Tim Blackler’s proposed recommendation, that the $14.5m carryovers be ratified on the basis council management review its delivery timeframes and report back.
In her report, Ms Nicholls said some of the 2024 financial year projects had already been "recast" into the 2025 financial year programme.
This included the Waitaki Events Centre project.
The most substantial carryover project was $9.2m on water upgrades, bringing the planned spend on water in 2025 to $27m.
