Council to vote on mid-year budget review, which reveals $2.076m change, turning deficit into surplus

A $2 million improvement in council coffers has seen the City of Greater Geraldton’s operating deficit of $888,000 turn into a $1.2 million surplus. Councillors will on Tuesday vote to approve the mid-year budget review and subsequent amendments, which signals the beginning of budget planning for the 2024-25 financial year. City director of corporate services Paul Radalj spearheaded the review which examined the incoming cash flow and outgoing costs. The mid-year figures present a proposed budget revision, incorporating all budget amendments from the current budget, previously authorised by council since its original adoption in 2023. The amendments exclude profit and loss on disposal of assets but reveal a $2,076,708 improvement from an operating deficit of $888,402 to an operating surplus of $1,188,306. One of Mr Radalj’s executive recommendations is to adjust expenditure allowances due to increasing contractor costs due to inflation. Overall, the budget will see an extra expenditure of $123,000 in contractor expenses, including Meru landfill, airport security, building maintenance, parks and verge maintenance. “The negative is that we’re going for a cycle over the last 12 to 24 months where we’ve been renewing all our annual supply contracts for goods and services . . . the rates are significantly higher as they previously were,” Mr Radalj said. Mr Radalj said the silver lining was seen in the city making additional interest earnings during the year. “What the positive impact is, because of high interests rates, we’ve been getting better return on our investments,” he said. Part of the decreased in costs can also be associated with the deferral of some projects to the 2024-25 financial year, including $565,000 for the Chapman Road-Bosley Street-Chapman Valley Road roundabout improvement. “This is sort of the lead-in to next year’s financial budget . . . the big thing we know from households is that everyone is feeling the pinch with the increased interest rates,” Mr Radalj said. The budget review was presented to council at last week’s agenda forum in Mullewa, with little discussion surrounding the item, according to Mr Radalj. The matter will be voted on at Tuesday’s full council meeting.