THE City of Greater Bendigo remains optimistic about its 2020/21 budget, despite predicting a deficit and "significant disruption" to the local economy.
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Councillors will consider a proposed budget at the July meeting, on Wednesday, which includes almost $8m worth of COVID-19 support measures.
The city expects the global pandemic to cost it an additional $3m, at this stage.
"The true impacts of COVID-19 on our local communities, businesses and council's own operations are not yet fully known," the proposed budget notes.
A draft budget, released in May, forecast income losses of $6.6m due to COVID-19 recovery measures and reduced revenue associated with restrictions.
The city was also expecting to receive about $10m of rates payments late, affecting finances for two years.
The 106-page proposed budget shows the city is expecting cash reserves to drop by more than $16m in 2020/21.
That's a $8.2m drop in cash inflows compared to 2019/20, which the city said was "mostly attributed to expected deferrals and payment arrangements for rates payments as the community recovers from [the] COVID-19 pandemic."
A two per cent rate rise is still planned, but Bendigo corporate performance director Andrew Cooney said the city would be investing that and more back into the community.
COVID-19 support measures include freezing more than 500 fees and charges.
The city's operating income in the proposed budget is $676,000 higher than it was in the draft.
Mr Cooney said the city had received some funding from other levels of governments for projects, which factored into the updated version.
"We still believe we're very sustainable," he said.
"We're spending money wisely where we can, but also putting a lot back into the community."
The city has flagged the potential of moving to medium risk for borrowings "in the coming years" in its proposed budget, with plans to borrow $3m this financial year.
But Mr Cooney said the city also planned to pay back more than $4m on another loan.
"To fund a lot of our projects and operations and keep services affordable, we made the decision this year to take some money our of our renewal program for a year," he said.
He said it wasn't something the city could do every year, as it had to keep investing in its assets and ensuring they were kept to a sufficient standard.
But doing so created an alternative to increased borrowing.
"We want to be really sustainable in our borrowings," Mr Cooney said, noting the city would prefer to use the money for major projects down the track.
New additions to the budget include:
- $18,000 for the Community Brass and Concert Bands
- $20,000 for in-kind support to the Bendigo Maubisse Friendship Committee.
- $4000 for scoping for a pontoon at Lake Weeroona
- $4000 toward scoping for a pontoon at Lake Neangar
- $16,000 for a new fence between the Calder Alternative Highway and the Service Road in Marong.
"We have worked hard to meet community needs while still creating a responsible budget, which will still allow us to continue to provide all the essential services our community relies upon every day," Mr Cooney said.
He said the budget might still change, with the pandemic and the federal and state budgets among the factors to consider.
"We're going to continue to need to be flexible," Mr Cooney said.
"This is the best estimate based on the information we have."
He said the city would update the community in the event of any changes.