Project deferrals planned as City of Kalgoorlie-Boulder employee costs soar in mid-year budget review

City of Kalgoorlie-Boulder employee costs have jumped by $4.6 million and projects are being deferred to help ensure the city closes with a surplus at the end of the financial year. A mid-year budget review for the 2025-26 financial year has been prepared for council to consider at next week’s ordinary meeting, with a $7560 surplus now estimated instead of the $110,000 in the adopted budget. It follows a $14.2m deficit carried over from the previous financial year after the city did not receive grant money it budgeted for, such as the roads to recovery grant. The report to council states a projected $4.6m increase in employee costs — bringing the financial year total to $41.1m — was due to vacant roles being filled quicker than expected and part-time staff temporarily supporting full-time vacancies. It states some positions approved during the previous financial year and some casual staffing levels were not incorporated in the adopted budget, contributing to the increase. The new budget also flags a $7.9m reduction in capital projects, with the $3.2m golf course dam surface water capture, $3.6m Kitchener Cut Line Road, and $1.8m motorsport projects being deferred, as well as $1.3m in kerbing works. Capital expenditure reduction will be offset by a $1.4m spend on upgrades to Yarri Road because of “unforeseen urgent works and increased traffic”, $1m to include the council-approved increase for the Goldfields Arts Centre pavilion project, a $2m increase in plant and equipment due to deliveries being earlier than planned, and $1.2m for the youth precinct project because of carried forward commitments not being included. A $6.5m increase in airport revenue due to higher passenger numbers has also contributed to a $6.7m increase in fees and charges revenue, bringing the new estimate to $63.1m, and associated airport security screening also went up $974,000. Budget estimates for materials and contracts jumped by $4.4m due in part to the increased security screening as well as $930,000 for IT software subscriptions and licences, $800,000 for extra footpath maintenance, $520,000 on works at the South Boulder Waste Water Treatment Plant, $300,000 on street tree pruning and watering, $260,000 on plant operating costs, $211,000 for airport contractors for vacancies, and $250,000 on kerbing maintenance. Endowment block vacancies being filled has also contributed $60,000 towards a $264,000 increase in other revenue, as well as $104,000 from insurance claim reimbursements. The report also notes potential further revenue which may be received before the end of the financial year, as the city continues to advocate for the release of the remaining infrastructure development fund payment associated with completed $10.1m Broadwood trunk sewer works which enabled the development of up to 400 key-worker dwellings last financial year. The report states an outstanding $3.2m remains unreleased as the remaining financial agreement milestones rely on private‑developer actions that fall outside the city’s control.