WEST Wimmera Shire Council has lost $100,385 in Federal Government funding after an overpayment by the Victorian Grants Commission.
Mayor Bruce Meyer said it was the second year in a row that council had lost money.
“The Federal Government has mucked this up again,” he said.
In a report to council, finance manager Ashley Roberts said grant funding represented a significant source of income for council.
“Grant receipts from all sources account for almost half of all council’s operating income,” he said.
“The Federal Government allocated an amount of funding to each state, based upon a number of factors, including population growth, inflation and other economic needs.
“The funding levels for each state are calculated in advance during each year’s federal budget process.’’
He said the Federal Government recalculated grant amounts at the end of the financial year.
“This can result in an overpayment or underpayment of grants,” he said.
The overpayment comprises $35,934 less from general purpose grants and $64,451 less from road funding.
“It is unfortunate that this level of funding is largely out of council’s control and it is unlikely council will be able to obtain other funding to cover the shortfall,” Mr Roberts said.
Council will now reassess its 2013-14 budget to achieve cost savings.
Cr Ron Hawkins said it was a shame but nothing could be done about it now.