Toowoomba Regional Council records first deficit in recent history
The Toowoomba Regional Council has recorded its first deficit in recent history, but Deputy Mayor Geoff McDonald said the result was good news for the region. Here’s why.
Council
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The Toowoomba Regional Council has reported its first deficit in recent history due to COVID-19, but the damage could’ve been worse.
That’s the assessment from Deputy Mayor Geoff McDonald, who said the council’s $98,000 deficit result was good news for the region.
The result was revealed in the TRC’s annual report, with the organisation keepings its sound financial rating with the Queensland Treasury Corporation.
Cr McDonald, who is the finance and business strategy chair, said the deficit was the product of the council’s big investment into the community to counter the economic effects of COVID-19.
“We’ve provided stimulus through the COVID pandemic response of over $8.7 million, directly into our urban and rural residents,” he said.
“The fact that we’ve been able to claw back what was looking to be an extraordinarily large deficit to only $98,000 in a $514m spend is an extraordinary performance.
“When we started the budget process for 2019-20, we’d actually forecast a deficit of around $7 million, and during the first three quarters, we’d actually turned that into a forecasted $1 million surplus.
“That held us in really good stead for a stimulus through the COVID-19 response, which allowed us to the do it.”
Cr McDonald said along with streamlining services across the region, the result was boosted by the loss of casual wages due to facility shutdowns during the first wave of the pandemic.
He said the TRC was on track to deliver a small surplus in the coming financial year.
“This council has its hands on the wheel and understands what is going on, and it puts us in a great position for this current financial year, which is forecast to be a small surplus,” Cr McDonald said.
“In my time, and this would be my ninth year, we haven’t recorded a deficit in that time.
“What makes this unique is it’s a year like no other.”
The council also reported hitting 95 per cent of its operational targets, which Cr McDonald said was a good result.
Mayor Paul Antonio praised the result, paying tribute to the work of staff for the annual report.