Whakatane District Council has announced a budget deficit of $2.5 million, blaming the economic slowdown.
Chief executive Diane Turner says development contributions and applications for building and resource consents are tumbling.
Revenue has declined by $1.6 million. Operating income was $6.8 million below budget.
Ms Turner says delays to certain roading projects and a wastewater scheme for Matata will also mean delays to $3 million in Government subsidies.
Ms Turner says $1.9 million of the $2.5 million deficit is related to the book depreciation of assets.
