COVID-19 trends seen in Rocky council’s budget
THE financial impacts of COVID-19 have been felt in Rockhampton Regional Council's income, according to the latest budget update.
An update on how the council was sitting currently was presented at this week's council meeting.
The summary budget report for the period until April 30 indicated the council's position as it moves towards the end of the 2019/20 financial year.
Chief executive Alicia Cutler spoke to the table and said the update report was "somewhat dated now" as there had been a lot of budget discussions in the last few weeks given the current circumstances.
She noted she had started to see the trend of decreased airport landing fees and COVID-19 and shutdowns had had an impact.
The financial impacts of COVID-19 started to be felt more significantly in April, mainly with fees and charges.
Rates and utility charges make up 99 per cent of the total operating revenue with $148, 631,672 year to date actual listed on the income statement.
The reduction of flights has resulted in decreased revenue from fees and charges.
A number of council-run events also had to be cancelled, reducing event revenue.
Total capital income was sitting at 53 per cent with $25,779,100 in year to date actual. The total capital expenditure was at 54 per cent of the revised budget, at $70,115,747.
The capital program had $7.7 million spent during April and now totals $70.1 million for the financial year.
The conclusion statement notes the impact of COVID-19 is becoming evident in trends and an operational deficit is expected at the end of the financial year. A number of capital projects were also being reviewed for 2019/20 with a substantial number of projects being forecast to be completed in the 20/21 financial year.
A revised budget position for the this financial year will be presented to the council during 20/21 budget workshops.
A formal budget revision is expected to be presented during June.