Newcastle Council is facing a massive loss in revenue due to the impact of the Coronavirus lockdown.
Council's March Quarterly Budget Review shows income is set to fall by $17.8 million by the end of June, leaving a budget deficit of $8.3 million.
The loss was caused by a fall in ticket sales from the Civic Theatre, reduced waste volumes at the Summerhill Tip, loss of bookings from the Stockton Caravan Park as well as reduced income from Newcastle Airport, investments, parking meters and traffic infringements.
Council CEO, Jeremy Bath says despite the $18 million COVID-19 hit, the organisation's long-term financial sustainability remained sound.
"Just like the majority of businesses and organisations in our city and region, our income has been significantly affected by COVID-19. However, because of prudent management of the City's finances in recent years, we have the ability to get through this economic downturn, albeit with a budget deficit this year. " he said.
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| City of Newcastle CEO, Jeremy Bath |
