Lismore council lost an important revenue stream when the recycling centre went up in flames

An insurance payout not only replaced Lismore’s recycling centre, destroyed by fire in 2019, it also recognised the loss of revenue as a result of the centre’s closure.

A fire broke out at the Lismore Waste Facility in 2019, impacting the council revenue.

A fire in 2019 destroyed not only Lismore’s prized recycling centre, but also the revenue it generated.

The March 2021 Quarterly Budget Review Statement presented at the Lismore City Council on Tuesday night revealed the business loss had been recognised by the council's insurance company and recompensed.

The statement reported the insurance claim of $4.2 million included an amount of $1.18 million that was returned to the general fund.

“The insurance claim exceeded the recorded expenses as it covered business interruption and loss of income as well as amounts expensed in the 2019/20 financial year,” the report read.

The fire was believed to have started in compost heaps and spread to the nearby Materials and Recovery Facility.

A fire at the Lismore tip on Wyrallah Rd in 2019.

Revenue from the sale of compost and recycling was lost as a result of the fire.

A new recycling building was completed at the end of last year.

When the 2021/22 Draft Budget was presented last week, councillors were warned there was still a lot of work to be done before the council reached financial stability.

But councillors last night said they were happy to see the council’s financial position improving, based on the quarterly budget.

Councillor Ellie Bird said she appreciated the efforts of staff in preparing the budget and identifying operational savings.

Councillor Darlene Cook said the council has a cash position of $772,000 at the end of the March quarter, which was a much better result than the December and September quarters.

She said the quarterly review reinforced the message that the council’s revenue was not sufficient to cover operating costs, and the council needed to justify all of its expenses going forward.