The Council has given in principle approval to the City of Greater Geelong’s financial results for the 2019-20 financial year.
A report considered by councillors during their Tuesday 8 September meeting concluded that the City is in a ‘sound financial position to meet its obligations going forward’, despite the significant challenges brought on by COVID-19.
The early stages of the pandemic between March and 30 June had a direct impact of $10.5 million on the City’s 2019-20 operating result.
COVID-19 impacts were largely a combination of support measures provided to the community such as refunded or waived rent, fees and services and free parking in the CBD, along with lost revenue at leisure and childcare centres.
While the comprehensive result is a surplus of just over $84.9 million, this is driven in large part by non-monetary assets handed over by developers, such as new roads, footpaths, public open space and drainage infrastructure. These totalled almost $90 million in value.
The recurrent operating result is a deficit of $17.8 million, made up of the COVID-19 impacts, additional depreciation of $5.6 million and other above budgeted operating costs.
The total value of Council-owned assets was further increased by a large capital projects program of $122.9 million.
New or upgraded community facilities and infrastructure delivered through this program included:
- $21 million in new or replaced roads;
- $6.4 million on the new;
- $5.4 million for new or replaced footpaths and bike paths;
- $3.4 million for the new in Corio;
- $2.2 million for redevelopment of the St Mary’s Football Netball Club pavilion and change facilities; and
- $1.3 million on the new Geelong Botanic Gardens visitor centre.
As a result, the total value of assets the Council is now responsible for managing and maintaining has grown to $2.8 billion.
Having gained in principle Council approval, the financial statements will now be lodged with the Auditor General.
Councillor Anthony Aitken, Chair, Finance portfolio:
The COVID-19 pandemic has had and will continue to have a major financial impact across our region. The Council has recognised its responsibility to support local businesses and our community through this difficult time, with a series of targeted support packages. This is partly reflected in these operating results.
Despite the financial pressures created by the pandemic, we continued to deliver important community services and infrastructure during the latter part of the 2019-20 financial year.
The coming year and beyond will be challenging, but it is vital that we keep investing in supporting the community while managing our finances in a sustainable manner.
