City of Greater Geraldton review budget, with a boost in operating income and reduced deficit

The City of Greater Geraldton council is making headway in their efforts to increase revenue and reduce spending, as part of their mid-year budget review.

Local governments must review their own financial performance from the second half of the previous year, and review the outcomes of financial decisions.

In a report to council, the city’s finances are looking more positive, with the original budget deficit of $1.468 million reduced to $731,066.

The mid‑year review identifies a net increase in total operating income of $602,836 compared to the endorsed budget.

This comes from a few areas — including materially higher interest earnings, with yields on investments producing an uplift of $403,498.

Thanks to Commonwealth Government Financial Assistance Funding, the city has received a $338,000 boost. Overall, the income from operating grants and subsidies, the council reported a $280,100 increase.

Contributions, reimbursements, and donations also went up by $215,227.

Employee costs have dropped by $486,200, due to a change from employment to external consultants, though as a result material and contract costs have risen by $271,119.

Cost of insurance has decreased by $25,000.

Lease and rental income earned the council an additional $110,000, and building and planning application fees saw them collect an extra $75,000.

Total operating expenditure forecast for this financial year has decreased by $135,073 compared to the endorsed budget.

There were still decreases in revenue for the council in some areas.

There has been a decrease in rate revenue of $122,160, partially due to a rates concession for Murchison Region Aboriginal Corporation’s not-for-profit rentals of $157,000.

A reduction in Aquarena entry fees due to the closure of the indoor pool saw the city lose $120,000 in revenue. There was an overall drop in $190,829.

The loss of one charter from Geraldton airport has also cost the council a $100,000 cost in airport passenger service fees.

The city’s unrestricted cash position at year end is forecast to remain broadly consistent with the original budget, rising slightly from $13.709m to $14.094m, with cash flow movements aligned to forecast actual capital spend rather than original commitments.

Some projects like the Queens Park Theatre lighting upgrade, foreshore youth precinct and Allanooka Springs Road widening, are all part of the mid-year budget review.