Deputy mayor: Geelong council finances ‘lineball’, hard times ahead

Geelong’s deputy mayor has warned of a “tough slog” as the city’s finances teeter on the brink.

Geelong deputy mayor Anthony Aitken has warned the city faces tough times ahead to stay afloat.

Geelong’s deputy mayor has warned the city’s finances are teetering on the brink, despite the city outperforming forecasts.

The City of Greater Geelong’s financial report for the first quarter of the 2023-24 financial year was put to council on Tuesday, revealing council was on track to achieve the meagre surplus predicted in the budget it passed in June.
However, deputy mayor Anthony Aitken found the report was “sobering” and said the next few years would be a “tough slog” at City Hall.

“This report shows the council’s budget was actually pretty good, because essentially we are on track to meet the very minimal surplus we adopted,” he said.

“The sad news, the disappointing news, is there isn’t a light at the end of the tunnel.

“The finances are not turning around quick enough to be in a position to meet the demands that are put on the council going forward.”

Mr Aitken said he had hoped $80m worth of stalled projects could start “coming off the shelf” but feared it was going to be another “tough budget”.

“It is so lineball that every decision we make … could put us into deficit,” he said.

“We are not going to be in a position to respond to the challenges and additional requirements that the community’s putting forward to us.”

In the three month period to September 30, the city had recorded an operating surplus of $2.8m, more than $1.8m higher than was forecast in its budget for the quarter.

Councillor Bruce Harwood noted this had been “primarily achieved through vacancies in the organisation”

The city saved $848,000 on salaries, wages and labour in the year to date, as well as $821,000 through “substantially” underspending on consultants in the period.

“We need to weigh up if this is having an impact on our services to the community, hopefully not, but these (vacancies) are red flags as such through the organisation,” he said.

“Consultants certainly have a place within council, sometimes we over-consult, and sometimes you could argue we under-consult … it’s a fine balance.”

According to the report, savings in materials and services mostly relate to “timing” and won’t be reflected in the year-end result.

Variances to two key council projects, the Northern Aquatic and Community Hub and the Armstrong Creek Town Centre Library, resulted in council spending an additional $5.7m than forecast on capital works.

Mr Harwood said financial reports were “like throwing a dart at a swinging dartboard at the moment”.

“We’ve seen the turbulence of finances in the last 12 months prior, and we see turbulence on the horizon,” he said.

However, he said that he hoped the next quarter’s financial report gave “that glimmer of hope that we can get that operating surplus”.

“The future is going to be a little different, it doesn’t mean we still won’t be achieving things for the community,” Mr Harwood said.

Originally published as Deputy mayor: Geelong council finances ‘lineball’, hard times ahead