AN AMENDED Mount Isa City Council budget has shown an increase of the operating expenditure by $1.5 million.
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Mayor Tony McGrady said there was also a $1.125 million increase in operating income which meant the shortfall was actually $416,000. He said the city had gone through a tough time but the budget was good despite this.
“The budget is well under control,” Cr McGrady said.
“I’m happy with the way the budget is tracking.”
Cr McGrady said the increase in operating costs could have been due to flooding earlier this month, with repairs, damage to roads and council staff overtime as factors.
Dust suppression and maintenance on parks and gardens in drought conditions last year could have also played a part.
So too could an audit of the Mount Isa Civic Centre, a slight rise in interest rates – which were not accounted for – and pumping costs from Lake Julius.
But the unexpected increase in income was due to state and federal government grants received since the release of the 2014-15 council budget.
Unexpected income included federal government funding of the installation of the Anzac Cenotaph in front of the Mount Isa Civic Centre.
Cr McGrady said the budget also did not take into account a council-owned property for sale, which could inject $1 million into the council’s coffers.
In Wednesday’s full council meeting, Cr Anne Seymour interpreted the budget to be $1.5 million over budget.
She said she could not understand the increase in operating costs considering there had been a focus on containing it.
“We’re not employing as many people now ... why aren’t we containing our operating costs?”
She further expressed concern for shifted allocated funds in a budget to other projects.
She was against reallocating grant money for other projects.
Cr Brett Peterson said grant money intended for a purpose was not reallocated.
Sometimes the council knew it received a grant and started operations before the money came through.
The money was reimbursed back to council, Cr Peterson said.