Financially, city 'in good shape'
DESPITE losing $3.6 million in investments due to the worldwide financial crisis, and a reduced surplus of $11 million, the financial outlook for Lismore City Council is still strong, financial manager Rino Santin told councillors at an extraordinary meeting on Tuesday.
Mr Santin said the $3.6 million was not an actual loss, but a 'quirk of reporting'.
He said council had invested about $34 million in direct securities. If they were sold now they would be worth about $30 million.
“But we have no intention of selling our investments now,” he said.
Mr Santin said the surplus loss was due to the current financial crisis, depreciation of council assets and the revenue carried over from the previous financial year.
General manager Paul O'Sullivan said council's day-to-day operations were not under threat. “It's not all coming down around us,” he said.
Mr O'Sullivan said council's investments could recover over the long term.
“I believe we are in pretty good shape,” he said.