MEDIA RELEASE – COUNCIL STILL ASSESSING BUDGET BOTTOM LINE IN WAKE OF FLOODS

Flood and tornado damage incurred from the disasters in January may see Bundaberg Regional Council out of pocket by amounts approaching $8 million.

Budget figures presented to Council today clearly show the intent to create a small surplus during the current financial year has disappeared predominately due to the disasters experienced in January.

While Council had intended to finish this financial year with a surplus of around $1.6million the effects of the tornadoes and floods have resulted in Council anticipating it could have a deficit amount of up to $7.5 million.

Mayor, Cr. Mal Forman said the effects of the flood on Council’s bottom line were still being assessed.

“During the floods Council simply had to spend whatever was needed to ensure essential services were repaired or maintained. We had an obligation to meet community needs and expectations.”

“It is currently estimated that we have spent around $23 million in disaster response and ongoing recovery expenditure this financial year and received State and Federal government funding of $15 million.”

Cr. Forman said Council was about $1million down on its normal tip fees collection mainly due to the vast amount of flood refuse that was allowed to be deposited free of charge at Council’s waste disposal facilities.

Council’s operational costs have increased significantly due to the overtime, weekend and all night  worked and the necessity to employ contractors and equipment as well as fund supplies and equipment for evacuation centres.

“The effects of the January disasters will be felt financially by Council for the next few years to come,” said the Mayor.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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