City prepared to go into the red for support packages

THE City of Greater Geelong may go into the red to fund economic and community support packages to soften the blow of the pandemic.

The council will tonight vote on Mayor Stephanie Asher’s proposal which includes a forecast that the city may go into deficit to fund packages for both the current and upcoming financial years.

“These packages are unfunded in financial forecasts or future Budgets, therefore council is considering a fiscal policy of deficit to fund these support packages for our local community and local economy,” Cr Asher’s notice of motion says.

“While council does not have a financial ceiling for the cost of the packages, we do believe these packages should neither impact on the longerterm financial sustainability of the City of Greater Geelong nor create an unsustainable burden for current and future ratepayers.”

Cr Asher said the city would allocate as much as it could to support the community through the packages.

“This is a once-in-a-lifetime situation that is already having serious impacts on our local businesses and the community as a whole,” Cr Asher said. “We are feeling for those facing tough times and want to do what we can to help.

“State and federal governments have a lead role in providing urgent and ongoing financial relief on a large scale. But, if this motion receives support from my fellow councillors, we will carry out a thorough review to allocate as much as we can towards supporting those who need it at a local level.”

Cr Asher said the city’s current advice was the pandemic life cycle was expected to last at least six months, with local impacts to last “much longer”.

The motion calls for the current financial year package to be completed and presented back to council by April 28, and for the 2020/21 package to be prepared by June.

The meeting, behind closed doors because of the virus, will be livestreamed.