Cash blowout a problem for council

LISMORE Council is a long way from being back in the black, with an operating deficit of $10.59 million.

LISMORE Council is a long way from being back in the black, with an operating deficit of $10.59 million.

The figures from the December 2011 Quarterly Budget Review were revealed at the council's ordinary meeting on Tuesday.

The figure is an improvement from the $10.763 million deficit reported at September 30, 2011.

But the bad news is the cash basis has gone from being fully funded or balanced at $39,400 to a deficit of $187,000.

Council's quarterly report states the budget deficit must be improved as a "matter of urgency" as the current situation is not financially sustainable.

Lismore Mayor Jenny Dowell said reining in the cash deficit is a priority for council.

"The $10.59 million deficit is predominantly because the depreciation of our assets is built into the budget," Cr Dowell said.

"Our immediate concern is reigning in our cash position - the $187,000 deficit - by the end of the financial year, but this council and future councils will need to address the ongoing deficit in terms of asset management."

Originally published as Cash blowout a problem for council