Planning salaries lead to blowout

A $700,000 investment in Baw Baw Shire’s flailing planning department has caused a blowout in the mid year budget.

A report to council last week showed council was $1.5 million behind in its forecast mid year position, largely caused by employment of additional planning staff salaries.While council received an addition $1.9 million in revenue, its operating expenditure was $3.4 million.

The biggest factor impacting increased expenditure was $717,000 in additional salaries, mainly fixed term positions, the majority of which were in the planning department.

An additional $500,000 also was spent on finalising council’s exit from aged and disability services.

Additional operating costs included $276,000 for agency staff, $230,000 for street sweeping disposal, $101,000 kerbside collection costs, $100,000 senior officer recruitment; $100,000 for traffic management and $70,000 for legal settlement fees.

Council spent $50,000 on consultancy fees to assist with the aged and disability care transition and $50,000 for a Drouin and Warragul roads economic analysis.

Grant funding provided additional revenue to council including a $500,000 outdoor activation grant, a $440,000 emergency management grant and a $169,000 native vegetation offset grant.

Amongst the additional revenue items received by council were $500,000 Victorian Grants Commission funding, $157,000 additional revenue including transfer stations, $81,000 building services revenue and $60 business concierge grant.

The report said the final impact was a “decreased position of $1.546 million.”

“The additional net expenditure is largely funded by a better than expected year end position at 30 June 2021, which was not known at the time the amended budget was set,” the report said.

Cr Darren Wallace said the mid year budget showed council was $1.5 million worse than forecast.

“We always want to show a positive position but this is not unexpected.

“This is the first mid year negative posted in my time on council,” he said.

Cr Wallace said the budget position was possibly a sign of the times at the moment.

“When growth is running ahead of the State Government rate cap, the budget is going to go backwards,” he said.

Cr Peter Kostos said “it is what it is” and council was now working on next year’s budget.

Cr Joe Gauci said mid year budgets reflected council’s financial position at a point in time.

“Anything can happen after this review and could be corrected shortly after. The ones that matter are the budgets that come out year to year,” he said.