COVID cost hits bottom line

TIGHTENING the belt amid the coronavirus pandemic has allowed Townsville City Council to claw back lost revenue.

The 2019-20 annual report has revealed how deep the pandemic cut, with the council taking a $10.9m hit due to lost income from low growth of income, costs associated with COVID-19 support packages, and reduced water consumption charges.

The council introduced a number of COVID-19 assistance initiatives including rate and utility charge deferrals, refunds for council venue bookings, rent relief for commercial leases, and free parking in the CBD.

Despite the financial blow, the council report says “strong financial management” has allowed it to record a small operating deficit of $3.6m.

Acting Mayor Mark Molachino said the report demonstrated the council’s “fiscal responsibility” and smart financial management amid the pandemic.

“While we were hopeful that the challenging times were past us with the recovery from the monsoon (2019 floods) well underway, COVID-19 had other plans for us and we implemented a support package immediately to assist the community with the impacts of the pandemic,” Cr Molachino said.

“Despite this and the subsequent hit to our revenue as a result of the pandemic, council remained committed to being fiscally responsible and it is a credit to our leadership that we have been able to continue to deliver for the Townsville community.”

Business Services and Finance Committee chairman Kurt Rehbein said the annual report showed the work that council staff had put in to delivering services to the community.

“The 2019-20 financial year was a huge one for finalising major projects across the city, while also delivering our core services,” Cr Rehbein said.

“Despite the impacts of the monsoon and COVID-19 council was able to deliver NAFA and HALO (light and sound show), finish the work on Central Park, and upgrade Palmer Street and Ogden Street.

“In addition to this, council also maintained 2652km of water mains, and 1364km of sewer mains, received 21,426 tonnes of green waste and 4482 tonnes of recyclable waste at council’s waste facilities.”

He added that during the 2019 calendar year 2890 tonnes of waste was collected through kerbside collections.