Mindarie Regional Council (MRC) expects to make $3.1 million less than forecast in this year’s budget, according to a recent report.
The council approved a revised financial position for the 2014-15 financial year at its meeting last month, attributing it to lower landfill gate fees approved last September.
‘It is anticipated that the MRC will move from a forecast surplus of $7,814,006 to a forecast surplus of $4,694,151,’ the mid-year budget review said.
‘This decrease in surplus was largely anticipated with the reduction in the members’ gate fee from $149 per tonne to $120 per tonne in October, 2013.’
The report said gate fee revenue from the member councils ” the cities of Joondalup, Wanneroo, Perth, Stirling and Vincent, plus towns of Cambridge and Victoria Park ” had reduced by $7.4 million.
It said there was also an $800,000 reduction due to increased diversion of waste to the Resource Recovery Facility (RRF) in Neerabup and a $600,000 reduction in casual revenue, with less tonnes brought to the landfill by non-members.
The report said the reductions were offset by a $5.4 million increase from the City of Stirling delivering its waste to landfill again and a $1.8 million decrease in costs at the RRF.
‘Stirling is anticipated to divert an additional 51,000 tonnes of waste to landfill at Tamala Park over that which was originally budgeted,’ it said.
‘As a result of ongoing efforts by Bio-|Vision to increase the levels of waste diversion from the RRF, it is anticipated that approximately 6000 tonnes of the coarse heavy fraction will be diverted from landfill as part of a trial project.
‘This will result in a revenue reduction of approximately $0.8 million (and) it is anticipated that this will yield an improved overall diversion rate, as well as a reduction in the RRF gate fee.’
The eight councillors present at the February 20 meeting unanimously approved the revised forecast surplus position.