Council budget defies dire COVID-19 forecasts

Noosa at a local government level appears to be ahead of the pandemic economic headwinds that have buffeted the tourism industry and small business sectors.

Cooroy's business fortunes are a mixed bag and Noosa Council's finances have not been as badly impacted by the COVID-19 pandemic as first predicted.

If any year was going to trigger insomnia in Noosa Council’s top bean counters it should be 2020, but the shire’s financial bottom line is not keeping them up late at night.

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Noosa at a local government level appears to be ahead of the pandemic economic headwinds that have buffeted the tourism industry and small business sectors.

The council’s October financial performance report showed operating revenues performing above what was forecast.

That was due to council facilities and business activity sales revenue outperforming COVID-19 budget assumptions.

The council’s operating revenue for the financial year to date was $44.7 million, comfortably above the budgeted $42.2 million while the operating expenses was $30.9 million, or $200,000 less than forecast.

Cooroy Chamber of Commerce president Chris Bell.

The waste utility charges were $369,000 above budget due to recovery of commercial collection services previously impacted.

There was $2.6 million income from fees and charges with building application fees $69,000 ahead of the forecast budget.

Capital revenue stood at of $4 million, with cash contributions from $427,000 development applications and capital grants of $3.5 million.

Cooroy Chamber of Commerce president Chris Bell, who operates Noosa Poolsafe, said sectors of local business in his area had been hit, but not as badly as residents dependent on the accommodation and tourism sector.

“The accommodation sector that pays their rates, they’re not getting the income,” Mr Bell said.

“So at one end of the scale you’ve got a massive reduction in income from these accommodation houses, but they still have to pay the taxes that keeps the council afloat.

“Out in the hinterland we are to a certain degree sheltered from it a little.”

Mr Bell said the Cooroy region did not rely on tourism to the same extent.

“We do have a lot of residents employed in (coastal) Noosa,” he said.

“There’s a reasonable feeling in the hinterland … we’ve seen a few businesses which have closed up.

“I was down in the main street (of Cooroy) on the weekend and I see there’s a sold sign on one of the vacant properties.

“I found that a fairly encouraging sign.”

Deputy Mayor Frank Wilkie last week asked corporate service director Michael Shave what was not going so well and was told there were no “red flags”.

Mayor Clare Stewart said Noosa appeared in a handy position financially.

“It seems like everything is ticking along quite well compared to what we had projected,” Cr Stewart said.

Mr Shave said there had been a lot of unknowns and the council had taken a conservative approach to its budgeting.

“Obviously we’ve been very lucky, Queensland’s been well managed in terms of its response to COVID and at this stage we’re travelling along quite nicely,” Mr Shave said.

“We’re just trying to get on with business.”

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