COVID’s financial strain
Council pivots from ‘survival and response’ towards planning for future
FINANCIAL pressure has started to gnaw away at Cairns Regional Council coffers with a new annual report revealing the depth of the COVID-19 effect on the books.
The report, to be tabled at Wednesday’s council meeting, shows the local government ended 2019-20 with an operating position deficit of $5.1m, including a $3.5m “one-off implementation cost” for a computer systems upgrade.
The dip into red ink followed a $236,000 surplus for the previous financial year.
A joint statement from
Mayor Bob Manning and council chief executive John Andrejic acknowledged the year’s difficulties but said eyes were focused ahead.
“As most organisations did at the beginning of the coronavirus crisis, our council focused on ‘survival and response’, but it is time now to look towards planning for the future,” the statement said.
“To that end, council has collaborated with more than 100 local charity organisations, government agencies, education providers, businesses, industry groups and peak bodies to develop the COVID-19 Cairns Local Recovery Plan.”
The council had to draw down debt in order to fund its $165.5m capital works program.
Some of the biggest spending for individual projects were $3m for the former courthouse refurbishment, $7.7m for Florence Street upgrades and $2.4m for a new roof over the Cairns International Tennis Centre.
Cr Manning earned $200,939 for the year, including a 12 per cent superannuation contribution, while five senior managers took home $200,000 to $299,000 salaries and two, including Mr Andrejic, earned $300,000 to $399,000.
The document revealed 718 complaints from ratepayers were made in 2019-20, of which all were resolved within the required time frame.
A total of 117 employee conduct complaints were received, of which 24 were found to be substantiated and eight deemed “inconclusive”.
Eleven complaints about councillors were referred to the Office of the Independent Assessor – including at least two about former division 5 councillor Richie Bates over “lack of respect” – but none resulted in further action being taken.
The council has flagged a $181m capital works program on the back of a 1.8 per cent rate rise for 2020-21.