General News
4 November, 2024
Shire’s $6.2m FY deficit
DOUGLAS Shire Council has ended the financial year with a $6.2 million deficit after forecasting a surplus of $118,000.
The council has blamed the extra costs involved with Cyclone Jasper recovery works as well as a federal government financial assistant grant of $5.1m not received by June 30.
Cr Michael Rees told the council’s ordinary meeting on Tuesday that the cyclone really put “a kink” in the budget after the council started the year “in a very good position”.
He said while a lot of money had been spent there was still money to come in as well.
Mayor Lisa Scomazzon said it had not been an easy time and “a pretty massive year”.
She said the financial position basically came down to the federal grant not being paid by June 30.
Cr Scomazzon said the deficit was largely out of the council’s control.
“It’s unfortunate the federal government grant was deposited after June 30, however the funds were still received, albeit in the following financial year,” she said.
“No one could have predicted the damage we suffered due to the devastating flooding in December either. The region’s entire tourism industry suffered and that included an unheralded closure of the Mossman Caravan Park and a very quiet start to 2024 for the ferry.
“While (the) council would prefer not to be in deficit, we hope the community understands it has been a challenging year of recovery, rebuilding and healing.
“We will keep moving on and keep delivering for our community.”
A council report said water revenue fell by $465,000 due to the ongoing rain earlier this year and level 4 restrictions.
“Revenue from fees and charges (were) under budget due to Cyclone Jasper and resultant flooding (by) $1.13m (Daintree River ferry, caravan parks and pool),” it said.
The report said higher interest rates added $586,000 to the budget.
“Employee expenses were under budget due to staff resourcing issues – $570,000,” it said.
“This was offset by materials and services expenditure primarily due to the use of temporary staff to replace unfilled positions and inflationary pressures. Materials and services were over budget $32.1m due to Tropical Cyclone Jasper and associated flooding disaster causing a large increase in disaster related materials and services expenditure.”
However the council’s September financial report has shown a turnaround with an operating surplus of $10.7m for the 2024-25 year compared to a budgeted surplus of $10.4m.
