The first draft of the 2008/2009 Whyalla City Council has estimated more than $22 million in operating expenses, $21.1 million in operating income and an operating deficit of $957,692.

Councillors discussed the draft briefly on Monday night and Mayor Jim Pollock asked them to have an in-depth look at the figures and see if it coincided with their ‘wish list’.

While discussing a few allocations Mr Pollock said it was important to consider the funds set aside while keeping in mind the needs of the community and prioritising it.

Councillor Jo-Anne Waters said one had to go through the figures page by page to justify some of the substantial amounts.

According to the summary of the draft budget a major chunk of the expenses will be on wages of the council staff amounting to more than $7.7 million and the major source of income will be from general rates, $9.1 million.

The capital works progam is anticipated to be $22.7 million (47 per cent of the total budget compared to 42.5 per cent in 2007/2008 budget), projected June 2009 balances include $1.5 million is cash reserves, and $4.6 million is loans outstanding.

Total recurrent expenditure has increased by 9.5 per cent when compared to the 2007/2008 adopted budget, which excludes new recreation centre operating costs.

Due to budget constraints a few capital projects like upgrading of Lacey/Rudall intersections, beach cameras, airport runway, tree management and a few other minor projects worth more than $1.6 million have been left out of the first draft at this stage.

A special council meeting will be held on June 4 to discuss the draft further before it is sent out for discussions at the community forum.

The draft will be distributed to members of the public on June 6 and a public meeting will be called in the council chambers on June 18.

Special council meeting will be on July 7 to consider the feedback from the community consultation and adopt the budget.

Some major capital projects for consideration under the draft budget are:

· $1.6 million for the kingfish harbour construction, which has been brought forward from last years’ budget and $436,364, is from grants

· $1.5 million for infrastructure improvements at foreshore out of which $750,000 are from grants

· Land sales at the industrial park are expected to be $14 million of which $8.5 million will be used to fund the infrastructure works at the site, $1.25 million to pay back short term loans for works carried out in the 2007/2008 financial year and the residual to fund other capital works in the budget

· $3.6 million for the construction of the new library; $3.2 million received from sales of land at industrial estate will be used to fund this project

· $1.5 million for road sealing; $500,000 will be used from rates received and the rest will be loans

· $1.2 million set aside for airport terminal building upgrade, maritime museum air-conditioning, maintenance of leisure centre, upgrading of toilets at Jubilee Park and a few other minor works in and around the city

· $415,000 for improvement of plant and equipment funded from rates received

· $688,500 for capital improvement program such as upgrading reserves and irrigation system in the city, Ada Ryan Gardens, duck pond and kangaroo enclosure; funds for these will be from rates received and sales of council assets.