Glen Eira Council nearly $2 million in debt in wake of COVID-19 pandemic

Glen Eira Council has revealed the extent of the financial fallout from the coronavirus crisis, with its operating budget plunged into debt.

Glen Eira Council has revealed the pandemic has wiped the surplus from its operating budget.

Top staff at Glen Eira Council didn’t take a pay cut during the COVID-19 crisis, despite library and leisure centre workers being temporarily stood down without pay.

The council has revealed the extent of the global pandemic on its operations, including an operating budget deficit of nearly $2 million.

The loss comes after the council spent $8.9 million on a COVID-19 response and recovery package, which waived fees, rent relief for community groups and sporting clubs, rates deferment, small business support grants, community grants and relaxed parking enforcement.

Chief executive Rebecca McKenzie assured residents no services were under threat as a result of the budget shortfall and has ruled out applying for an exemption to the rates cap next financial year.

However she said capital works projects had been severely delayed.

“The spend on council’s capital works program in 2020-21 has been significantly impacted by the restrictions on COVID-19, due to delays with the availability of contractors and the nature and timing of work that could be undertaken,” she said.

Ms McKenzie said “a number of projects” due for completion by the end of this financial year would likely be carried over to 2021-22.

She has not ruled out a rates rise in line with CPI, but said the community would be “consulted widely” before any decision was made.

Ms McKenzie said the biggest challenges for the council in the wake of the pandemic were ensuring social cohesion at a time where events might not be able to go ahead as they normally would.

Helping business facilitate new ways of trading and supporting community groups and volunteer organisations to stay afloat were also top priorities.

“Ensuring our own work on the vibrancy of our activity centres and access to open space keeps pace with changing community expectations about how these places are used and enjoyed (will be a big issue, as well as) continuing to invest in constructing new local infrastructure — despite our challenged financial circumstances — because it helps to create jobs and local employment,” she said.