Borough shifts funding in final 2023-24 Budget

THE Borough of Queenscliffe has shifted and repurposed funds for several projects in the final version of its 2023/24 Budget, and is projecting a deficit according to the statewide framework.

According to the officers’ report presented to councillors at their meeting on Wednesday night, the borough has increased spending on materials and services by $445,500 compared to the draft budget but also “deferred or revised” the scope of projects worth $454,000, resulting in an overall reduction of $8,500.

The biggest single increase is the estimated $433,000 cost of removing asbestos from the old Fisherman’s Co-Op (which is entirely funded by external grants), and there is an extra $10,000 to support community events.

Conversely, the $350,000 allocation for the Golightly Development Engagement Plan – criticised several times in community submissions to the draft budget – has been heavily cut to $50,000; $20,000 has been cut from the Disability Action Plan; and there is now no funding in the final budget for the Marine Coastal Management Plan nor the Lighthouse Arts Collective for a combined saving of $20,000.

The borough has also dropped its $126,500 plan to employ an executive-level administrative assistance officer.

According to the Local Government Performance Reporting Framework (LGPRF) – the mandatory system of reporting for all Victorian councils – the projected underlying result for 2023/24 is a deficit of $331,000, but the borough believes the LGPRF figure is not a true reflection as it should exclude the impact of non-recurring operating income and expense items and be adjusted for the timing of recurring operating grants.

On this measure, the adjusted underlying surplus will be $139,000 in the 2023/24 financial year.

Under the LGPRF, an average $180,000 underlying deficit is projected for each year for the next four years (until 2026/27 inclusive), but the borough is projecting an average breakeven (circa $14,000) underlying result over the same period if non-recurring operating expenses are excluded.

“The long-term financial outlook for council will depend on careful and prudent planning, in particular when considering the need and ongoing management of new assets,” the budget states.

“The impacts of rate capping, limited opportunities for rate income growth, community expectations about service levels and the ongoing management of existing assets will continue to provide financial challenges for the borough in the coming years.”

Several submitters to the draft budget criticised the borough being in deficit in 2023/24 and in the years to come.

In response, officers stated: “10 years ago, the council had close to $1 million in loans on its balance sheet and just $50,000 balance in the general reserve account.

“Today, council’s balance sheet is debt-free and there is $1.1 million in its general reserve account.

“Neither the draft budget nor draft financial plan indicate that the Borough is not financially sustainable based on the current operating model.”