‘Difficult decisions’ face Lismore councillors as new Budget tabled

Staff will present a report on the council’s current financial position tonight. They warn revenue was “insufficient” to meet operational needs.

Lismore council will deliver its draft budget for 2021/22.

The state of Lismore City Council’s financial situation will be laid bare tonight at an extraordinary meeting to discuss its budget for the next financial year.

Council financial staff will present the Draft Imagine Lismore 2021/22 Operational Plan and Budget to councillors, and they say tough decisions will need to be made to avoid a projected cash deficit.

While the deficit of $206,800 showed a gradual improvement of the council’s financial position from previous years, the council report said the situation “remained challenging” and management would continue to explore cash saving measures to return to surplus.

“Council’s revenue base is insufficient to maintain its current asset base and to deliver target service levels, which results in limited capacity to address asset maintenance backlogs (including road improvements) and deliver discretionary services and activities such as tourism and economic development initiatives,” the report said.

This year’s Budget outlines increases to rates and fees, details of grant funding, and plans to borrow funds for select projects.

However the report said “a series of difficult decisions” faced councillors to address the council’s long term financial sustainability.

It says although the “council has been successful in securing significant grant funding for (the financial year) 21/22 and beyond it does not address the issues associated with large infrastructure maintenance requirements and backlog”.

The report suggested limiting investment in non-core activities and selling those non-core assets deemed a drain on the council funds. It suggested focusing on the viability of commercial enterprises and careful decisions on future investment.

Mayor Vanessa Ekins said the council embraced zero-based budgeting this year to better scrutinise expenditure to ensure the council could provide key infrastructure projects for Lismore and surrounding villages.

Ms Ekins said: “While council has some difficult decisions ahead financially, we are being responsible and planning for the future while still delivering on the visions of our 10-year Strategic Community Plan”.

Councillors will review the report and vote to place the Budget and Operational Plan on public exhibition for 28 days.