Tauranga's ongoing building boom is continuing to outstrip the city council's financial forecasts, with the full year projection for city council revenue from development contributions revised upward by $9 million, to $25.7 million.

The financial figures for the first nine months of the year were received by the Tauranga City Council's Finance and Risk Committee on last week.

New furniture will cost council $235,000.

Associated with the higher level of activity is higher resourcing costs, including the purchase of seven new vehicles for city building inspectors, costing an unbudgeted $197,000.

The vehicle purchase was approved by the CEO Garry Poole in December 2015.

The council's staff costs are expected to blow out to $2.4 million above budget because of the continuing pressure on consenting and other growth related activities this financial year.

'Overall, the full year operating result is projected to be slightly favourable to budget as the additional user fee and interest revenue is offset by additional expenditure to deliver on the higher level of activity,” says chief financial officer Paul Davidson's report.

The rates funding requirement for the full year is expected to be as budgeted.

The higher level of development contributions, the proceeds of land sales and timing of the delivery of the capital programme means the city's net debt is nearly $40 million less than expected at $315 million.

Net interest costs (interest revenue and interest expense) are expected to be below budget this year because of lower interest rates and lower debt expected by year end.

The revised forecast for 2016, based on new dwelling consents through to March 2016, is for approximately 1570 building consents for new dwellings to be issued this year.

Rates revenue is tracking to budget for the full year. Water meter revenue is projected to be $300,000 above budget due to higher volume consumption.

In other expenditure the council has spent an unbudgeted $1.6 million on biosolids. The expense is funded through the Biosolid Reserve. The overspend is offset by lower operating costs including electricity and the timing of grants to community organisations.

The full year forecast is for an operating deficit that is slightly favourable to budget and the rates requirement for the full year as budgeted.

Other unexpected costs include $46,168 on the Glenyon Ave sewer upgrade. The overspend is primarily due to additional costs during the design/consenting phase of the project and additional legal costs related to negotiation for access to private property.

The demolition of the Food Bank building at Dive Crescent due to the discovery of asbestos and other building-related issues, was an unbudgeted expenditure of $187,000.

The city council also spent $235,000 on furniture following the forced eviction from the Willow Street offices after the mould discovery. This amount includes renewals, new furniture and the fit out of office space in the Devonport Road building. This furniture will be used in any future accommodation arrangements.