Warrnambool council ends the year "quite well" despite challenge

In releasing its draft annual report, Cr Ben Blain said the council had actually performed "quite well".

"It's been a year of challenges with the rising costs - especially the capital works program," he said.

The council ticked off a number of major projects in the 2022-23 financial year and made some big decisions which impacted its bottom-line.

The cost of operating the city's new library service rose to $1.119 million - $122,000 more than it had budgeted for.

Before the new library opened, the council was spending just shy of $1 million to operate its old library, and some councillors had raised concerns about the increasing costs of the new facility.

But the council had flagged the operating costs of the new library would be higher.

"Council are paying the full cost of running a library service in-house with a new larger capacity library opening in October resulting in increased costs of operation," the council's draft annual report says.

The cost of running the new facility has increased from $21.62 per person in 2020 to $38.20 in 2023.

But usage is up with the borrowing rate rising from 13.87 per cent in 2020 to 17.1 per cent this year.

The closure of the city's saleyards resulted in a $864,000 turnaround - the council budgeting for a $366,000 profit but instead ending the year with a $498,000 loss.

Councillors voted 4-3 in November last year to close the facility mid-2023, but the doors shut early when farmers and agents walked away just after Christmas.

However, the decision meant the millions set aside for a major upgrades at the saleyards were redirected back into the budget.

The city's holiday parks made a $1.37 million profit - up $336,000 on budget - and more than the $1 million profit they were bringing in before the pandemic.

Flagstaff Hill Maritime Museum finished the financial year $672,000 in the red, but that was $297,000 better than expected.

The council has previously said Flagstaff Hill had exceeded expectations since summer with visitor numbers up.

The loss was also an improvement on pre-COVID times when the loss reached $740,000.

The cost of running the museum is coupled with the cost of operating the tourist information centre.

A masterplan and business case for the long-time future vision of the tourist attraction and museum of the region's shipwreck history has been done but is yet to be presented to a public meeting.

With the council notching up a more normal year after lockdowns and pandemic restrictions on travel, councillor expenses rose to $379,927.

Councillors in the 2022-23 financial year spent almost $60,000 on training, $9500 on accommodation and $5000 on meals.

Pre-pandemic in 2019, elected councillors cost just over $282,000 in allowances and expenses, but a massive pay rise given to councillors statewide last year has impacted this year's costs.

In 2022, an independent tribunal approved a "significant" pay increase for mayors and councillors and, for the first time, ruled that the deputy mayor be paid half the mayoral allowance.

The council had, in post-COVID times, struggled to fill staff vacancies. But in the 2022-23 financial year employee costs jumped $1.6 million to $37.6 million.

Rates and charges brought in $45 million - a rise of $1.8 million. User fees were also up $3.17 million to $19.4 million.

The draft annual report and finances will go back to the October meeting for approval.

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