Pandemic taking toll on council
BUFFERING the economic drain of COVID-19 is taking a toll on Cairns Regional Council’s finances with a new report showing certain measures cannot go on indefinitely.
The council’s chief financial officer has crunched the numbers and estimated a $3.8 million blow to the operating position from a range of response initiatives and other economic impacts.
A report before today’s council meeting says the council stands to lose $2 million in parking revenue alone after ending infringements issued in the CBD.
Waiving restaurants’ outdoor dining fees will cost $90,000 before the end of the financial year and foregone interest on overdue rates will become a $260,000 hit to the bottom line.
The council also fasttracked a $2 million injection into Tourism Tropical North Queensland – not included in the $3.8 million coronavirus impact figure – and stands to lose about $200,000 in reduced rent.
That figure could still grow with the Federal Government issuing a new code of conduct for councils to waive all rental payments for lessees affected by the pandemic until at least July, which could cost an extra $170,000.
Moves to bring forward $2.5 million worth of works over the next three months will also take their toll when accountants close the ledger book on 2019-20.
Those numbers are subnificant stantial but one initiative is having the biggest effect on the local government’s cash reserves – the decision to extend the due date on rates notices.
“In addition to the above impacts on council’s operating position, the impact of the extended rates due date combined with an increased number of ratepayers unable to pay will create a cash deficit in the order of $20 million for 2019-20,” Ms Whitton’s report states.
“The outstanding rates balance is currently $44 million, $22 million higher than usual for this time of year.
“The cash flow impact is expected to be even more sigin 2020-21. Given that council maintains a minimal cash balance, officers have requested an increase to council’s working capital facility to provide a safety net whilst further measures are considered as part of the budget process.
“As part of the 2020-21 budget process, council will take the next couple of months to carefully consider all options available to continue to support its ratepayers and the community.”
A WOMAN charged over a car stolen from Palm Cove while the owner was away working remotely has been granted bail. The Honda coupe was parked at a business on February 17 with the owner only realising it was missing when contacted by police on Sunday after the vehicle was found damaged at Wangetti. Kuranda woman Kara Rene Ross appeared in the Cairns Magistrates Court yesterday charged with two counts of unlawful use of a motor vehicle and breaching a bail condition. She was granted bail and the case adjourned until June 26.
A MAN has been charged over a series of offences allegedly committed around Cairns over a month. The 27-year-old Cairns man is facing eight charges including four counts of stealing, and one count each of unlawful use of a motor vehicle, entering a premises, unlicensed driving and possession of tainted property. It is alleged the offences were committed in Westcourt, Parramatta Park, Yorkeys Knob and Palm Cove between March 17 and April 16.