Coronavirus: Maroondah Council set to lose $5 million in savings due to outbreak
A council in Melbourne’s east is expected to lose millions of dollars in savings as user fees dry up and spending subsides due to the coronavirus outbreak. See how much it is set to lose.
Outer East
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A council in Melbourne’s outer east is losing millions of dollars as services are closed due to coronavirus, but will not hit ratepayers to recoup lost earnings.
Maroondah Council is set to lose $5 million in savings as a result of the virus outbreak, with its predicted $5.8 million budget surplus at the end of the financial year slashed to $800,000.
Chief executive Steve Kozlowski also said the council expected to miss out on $10 million in user fees from its venues including Aquanation, Maroondah Nets and the Karralyka Centre.
He also said the council had reduced its planned spending by $5 million due to the venues being closed.
Mr Kozlowski said the council had suspended membership fees at its gyms and sports centres, and refunded ticketholders for cancelled events and shows at Karralyka.
He said the council had frozen discretionary spending, reviewed its capital works program and renegotiated its contractual arrangements.
Mayor Mike Simon said the council’s smaller surplus would mean less money for future capital works projects.
He said the council charged rates in line with the State Government’s rate cap, set at 2 per cent for the next financial year, and would not apply extra levies to re-coup costs.
“There is no plan for council to charge higher rates than provided for under the rate cap,” he said.
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“As with all businesses and organisations operating in the current COVID-19 pandemic environment, council’s budget, long term financial strategy and proposed 10-year capital expenditure program will now need to be reviewed to take into account the reduced level of funding,” he said.