THE coronavirus pandemic is expected to drain more than $4 million from the City of Greater Bendigo's coffers this financial year.
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Further pain is expected next year, with the city's draft budget scheduled for release when council meets on Wednesday.
A report in the meeting agenda reveals a forecast $5.17 million cash deficit in the financial year ending June 30.
The expected deficit was attributed to a range of factors, including "the combination of reduced revenue attributed to the lockdown and the increased and unbudgeted expenses incurred to support our community and businesses."
The city ended the financial year to March 31 in a favourable position, with a $10.6 million variance to the operational surplus.
The outbreak of COVID-19 had yet to make a significant dent in the city's finances, at that stage.
But the city's financial strategy manager, Nathan Morsillo, expected "significant unfavourable impact" on income associated with parking, childcare, animal services, the Bendigo Art Gallery, Bendigo Venues and Events and tourism and major events in the final quarter of the financial year.
"These forecast changes are related to the impacts of the COVID-19 restrictions," he wrote in his report.
He noted that forecasts to June 30 were based on estimates of the impact of the lockdowns and the timing of any reductions - factors that continued to change.
"The full effects of refunds, waivers, support to community and other costs and savings related to the pandemic are still being recognised in April 2020," the report said.
Victorian Premier Daniel Andrews announced slight relaxations in restrictions earlier this week.
The City of Greater Bendigo was on track to finish the financial year in the black when Mr Morsillo wrote his report, despite the likelihood of a $5.17 million cash deficit - but only just.
The city seemed set to end the financial year with a $1.6 million addition to the operating surplus.
"That is a very small variance in the context of the organisation," Mr Morsillo told the Bendigo Advertiser.
For all the losses in 'user fees', there were savings in other areas.
Some were attributed to COVID-19 restrictions, such as the cancellation of events.
Grants and timing contributed to favourable results in the city's financial position to March 31.
Increased activity at the Bendigo Livestock Exchange and commercial waste disposal also injected $1.1 million more than expected into the city's coffers.
Information about assistance for residents experiencing financial hardship is available by calling the City of Greater Bendigo on 5434 6000.