Warrnambool City Council's mid-year budget is $700,000 healthier than expected but the good news has prompted questions about whether a hefty rate rise was needed.
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Cr Peter Hulin said the figures raised questions about whether the council really did need the extra $655,000 in rate revenue it imposed on ratepayers when it got special permission to lift rates above the State Government-imposed cap this financial year.
"It has to be severely questioned, that's for sure," he said.
Cr Hulin said he would vote against imposing another rate hike above the cap for ratepayers in the next budget, even though the Essential Services Commission had given the council the OK to do it.
The council increased rates by 4.5 per cent, two per cent above the cap which cost the average ratepayer an extra $31 a year on top of the capped increase of $38.
An 18.5 per cent increase in user fees and fines has helped drive up the council's bottom line.
User fees were $376,000 higher than budgeted due to a better than expected performance of The Lighthouse Theatre, caravan parks, the saleyards as well as more revenue from car parking and an increase in the number of children in its after-school care program.
Planning application fee revenue was also higher and extra funding flowed from the Grants Commission and for aged-care services.
The financial update presented to Monday's council meeting said council's net surplus of $26.83 million was inline with the budget but the operating surplus was expected to reduce during the remainder of the financial year to $8.17 million as expenditure outpaced revenue.
Cr Hulin asked for more information about council's financial position to be included in the reports for the public to see, such as the performance of Flagstaff Hill and AquaZone.
He said the document didn't tell anyone much at all.
"We're an open and transparent council. I believe the people should know the good, the bad and the ugly," he said.
Director of corporate strategies Peter Utri said that issue should have been raised at the council briefing when a draft was presented so it could be changed in time for the agenda.
However, Cr Sue Cassidy said she thought the report was better than it had been in the past "but maybe council needed to look at it more".
Cr Cassidy highlighted how strongly the Lighthouse Theatre, caravan parks and saleyards were doing.
"I am looking forward to seeing January's figures to see how our holiday parks went because I think they were packed for a lot longer than they have been at any other time," she said.
Cr Robert Anderson said the council was still awaiting an insurance claim to cover the cost of the damage caused by a slow water leak to Florence Collins child care and kinder which had impacted on the budget figures.
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