BUDGET BLUES
The City of Kalgoorlie-Boulder looks set to drastically curb spending and cut costs after a mid-year budget review revealed a significant drop in revenue.
The budget issues were flagged at an ordinary council meeting on April 13, when it was suggested the City raise a new loan for $1.2 million over 15 years to cover a shortfall in funding for the Burt Street Heritage Project.
A statement of financial activity for the eight months to February 28, filed by City finance manager Susan Mizen, outlines how a reduction in income from rates, fees and charges, property, the golf course and grants left the City short by $2.9 million.
Operating revenue for the same period was $33.8 million, while operating expenditure was $47.6 million.
"The performance of the City of Kalgoorlie-Boulder for the eight months has overall been outside the budget parameters," Ms Mizen said.
Reducing the loss was capital expenditure, which came in under budget, according to the report.
Also suggested was a move to bump up a loan for the Ray Finlayson Sporting Complex from $5.7 million to $6.579 million, pending the outcome of a Royalties for Regions grant application.
It also looks likely that membership of the council's audit and finance committee be expanded to automatically include the mayor and deputy mayor, with a minimum of three additional elected members, in an attempt to arrest the situation.
It is expected council will adopt mid-year amendments totalling close to $5 million in an attempt to rescue the budget, hoping to cap off the financial year with a $664,267 surplus on June 30.
City chief executive Don Burnett addressed the question of whether a substantial rise in rates was on the horizon.
"The mid-year budget review has no impact on the rate setting for 2015-16," he said.
"The mid-year review projects a surplus as at June 30, 2015, and this will be included in the budget deliberations."
Asked if council would move to curb spending throughout the rest of the financial year or postpone projects, Mr Burnett pointed to the mid-year budget and subsequent report.
Areas earmarked for cutbacks or deferments include furniture and supplies for the Men's Shed, a survey to identify a future landfill site, a sewage infrastructure review, an automated toilet for St Barbara's Square, plant upgrades and equipment for the Oasis, and half of community safety initiatives.
Mr Burnett suggested faster assessment of RFR grants would be welcomed to help with forward estimates, but argued it was "not an issue" for the mid-year budget.
