The update was presented to council at its monthly meeting on March 26.
“It’s pretty well steady as she goes. The projected full-year deficit is going to be $5.1 million,” Cr Geoff Dobson said.
Cr Dobson said the dual challenges of COVID-19 and the 2022 floods were still impacting on council’s financial position.
“It’s an understatement to say that the issues of COVID and the floods continue to be front of mind to all councillors and council management, obviously, when we’re looking at the finances,” he said.
The report presented to council listed its liquidity at 155 per cent and said council had bank deposits of $37 million.
“All in all, a conservative but favourable outlook in finances going forward,” he said.
Cr Anthony Brophy said council was gradually reducing its debt in a responsible way.
“The debt is being arrested. It’s being done, and the easiest way to look at this is our liquidity ratio, which is pretty high at the moment at 155 per cent,” he said.
“What that actually means is if things went belly up, can we cover our debts and the simple answer is yes we can by 155 per cent of that.
“We can because we put measures in place, not only by our council finance team, who have done a great job, but also approved by council and councillors.”
Cr Seema Abdullah told the meeting that council’s financial position was improved in part by an understaffing issue and the moving of capital works projects to the next financial year.
“As this report illustrates, one of the reasons for this reduction is that materials and services and employee costs expenditure, they have reduced, and when you’re talking about a reduction in employee costs, basically it’s about the current vacancies,” she said.
“So we have current vacancies, staff vacancies, and that is why that expense has reduced, and we know that when the staff are not there, it definitely impacts our services as well, so there is this connection between the reduction and how it’s impacting the actual level of services."
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