Council managed a $1.6m loss of investment interest, brought on by global financial instability, in its 2008-09 budget.

General manager Keith O’Leary said council was making a $3m return from funds that have been invested awaiting approval for injection into infrastructure, building projects and alike.

However the return was cut by more than half in 2008 due to rapidly falling interest rates, leaving council with $1.4m for the year.

“The whole budget was severely under stress,” Mr O’Leary said.

The rigid finances were a perquisite for the proceeding [and entirely separate] financial year with council forced to axe some community services to manage a deficit.

“The original 2008/09 budget contained a projected deficit for the year of $63,000.

“The final position at the conclusion of the budget year (June 30, 2009) was that the deficit had increased slightly to $85,480. As council's overall budget is approximately $75m, the slight increase to the budget deficit was considered to be an acceptable variance.

He said auditors approved the budget but council “can’t over extend itself”. “The real issue is that council does not have sufficient funds to undertake the level of infrastructure maintenance that it needs to do,” Mr O’Leary said.

“Whilst council needs to do much more, it does have to live within its means with a view to ensuring that the organisation remains financially sound.”

The inability to expand on existing services and infrastructure is one aspect of council’s financial year that has been reviewed in its Annual Report.

On the upside of 2008/09 the Rudd Government, in its round of stimulus spending, handed over $1m to Great Lakes Council for smaller infrastructure projects like cycleways and sidewalks.

Other hallmarks included the construction of council’s customer service centre in 2008, an improved service for ratepayers, and the inaugural Multisport Festival luring triathlon competitors and families back to Forster.