Council to sell off Warrnambool saleyards infrastructure

With the council set to hand down its draft budget at Monday's council meeting, the need to borrow funds to carry out $5.6 million worth of upgrades at the site will no longer be required.

Councillors had approved the spend in the past two budgets, but after a heated public debate over the long-term future of the site they voted in November to close it down mid-2023.

But farmers and agents who were upset by the decision upped and moved their business elsewhere before Christmas, and the yards were shut.

The saleyards' run of profits came to an end with new budget figures showing the council taking a hit to its bottom-line this financial year.

The saleyards are forecast to make a $319,000 loss this financial year, after last year bringing in a profit of $212,000.

While income for the half-year was $517,000, expenses at the site were $836,000 - almost the same as it would have been if it operated for the whole year.

The council agenda for Monday's meeting says the ongoing costs related to site maintenance.

Corporate strategies director Peter Utri said had the council proceeded with an upgrade of the livestock exchange, it would have needed to borrow funds.

He said work was under way on the strategic land use plan for the yards.

"Council expects to have some preliminary advice on site rehabilitation costs and future uses of the site around June-July," Mr Utri said.

"A considerable amount of work has already been undertaken on site including the dismantling of infrastructure, much of which is being prepared for the first clearing sale to be held on May 19.

"Fences, gates and timber are among the goods to be sold through an online auction."

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