COUNCIL’S budget is more than $800,000 in the red.
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Armidale Regional Council councillor Peter Bailey said better forecasting is needed.
“I find it extraordinary we could miss our interest income by $455,000,” he said.
“I don’t think any business would accept that so I don’t see why we should have to accept it.
“Mr CEO, why did we miss our interest income by such a huge margin?”
Chief financial officer Keith Lockyer said council’s forecasting was thrown off as interest rates have remained low.
“The investment portfolio has been impacted by a drop in interest rates of 0.5 per cent,” he said.
“There has also been a decrease in development applications being received by council which has resulted in a reduction in income.”
The format of the budget reports was a big issue with councillors at Wednesday’s meeting, who felt they were not clear enough for themselves or the public.
A report will be prepared for the March council meeting on options to eliminate the $801,803 budget deficit.