Brimbank council is bracing itself for a hit of about $10 million to its operating budget and cash flow.
In its quarterly financial report for the period ending March 31, the council predicts significant shortages due to a number of revenue sources drying up.
The biggest hit will come from the deferment of rates, which the council predicts will be in the vicinity of $7.5 million.
It has also predicted that parking infringements will decrease by $1.05 million, animal registration deferrals will result in a loss of $350,000 and $965,000 will be lost due to the closure of the St Albans and Sunshine leisure centres.
Closure of other facilities across the municipality is predicted to cost $700,000
The forecast closing cash at bank for the year ending June 30 is $44.30 million, which is $9.63 million less than the budgeted closing cash at bank of $53.93 million.
Brimbank council organisational excellence director Shane Marr said the council will likely feel the impact for some time.
“Some of the costs in there [the report] are annual costs where we’ve had things like fees waived … so that could be a similar figure to next year if that occurs,” he said.
“The big one is around the assumptions around the deferral of rates and we’ve made assumptions there that around $7.5 million of rates income may be deferred.
“So it’ll be recovered, but it may be in later periods than this financial year and if we use those same assumptions going forward … this is based on the fourth quarter installment, it would be around the $30 million, which is around four times that figure.”
Cr Margaret Giudice said that while a number of significant capital works projects were set to be completed, a number would have to be put on hold.
“There are lots of variations of course due to COVID-19, but also due to our capital works program at this time of the year,” Cr Giudice said.
“We always review the capitals works program and some projects are ahead, some projects are behind, some projects perhaps will have to be deferred.”
