Albury Council has budgeted for a deficit for one of the rare times this millennium with the economic impacts of COVID-19 biting hard at all levels of its operations.
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A forecast deficit of $4.35 million will be presented to councillors as part of the 2020-21 draft budget on Monday night with council prepared to absorb a financial hit of $1 million from both a $40 reduction in its domestic water charge and a zero increase in water and waste water charges.
Council staff propose the 2.6 per cent rate rise still be charged amid fears of playing catch-up costing $12 million over a decade-long period.
The 2.6 per cent rate-peg rise equates to an increase of $45 per property or $1.1 million in revenue.
In comparison, the council forecast an operating surplus of $4.2 million last year.
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The council has also proposed a $750,000 COVID-19 hardship relief fund on the basis some ratepayers will suffer major financial hardship and limitations on council's ability to waive rates.
Due to COVID-19 related impacts on council-owned facilities including the airport, Lauren Jackson Sports Centre, Albury Entertainment Centre, Murray Art Museum Albury and Library-Museum is expected to have a $3.3 million hit to revenue this financial year.
Anticipated savings from reduced usage is forecast to be minimal.
The council presently holds $2.5 million in reserves previously collected for domestic waste management and the use of $1 million from this reserve will support the service provision in the upcoming financial year.
As a result, the one-off domestic waste charge will drop from $250 to $210.
Zero interest being charged on overdue rates from April 1 to October 1 this year is also expected to come at a cost of $350,000 to council.
In a bid to stimulate economic activity post COVID-19, the council is proposing to invest $53 million in water, wastewater and other capital works and spending $46.8 million on maintaining and increasing a 500-plus full-time equivalent workforce.
"Council does have the financial capacity to provide some relief and recovery stimulus to contribute to our community and local economy moving through this difficult time," the meeting agenda states.
