Developer Brendan McHugh took council to court after a majority of councillors twice ignored the recommendations of senior staff and rejected his application to open a new kennel, cattery and small pets hotel on Marys Lane.

Mr McHugh won the case, leaving council to foot a hefty legal bill. And a quarterly review of council’s financial position by corporate services and finance director Bob Roach has detailed just how costly that decision was.

Mr Roach’s report showed council’s legal bills in the McHugh case totalled $84,685 for the three months ended September 30, bringing the total cost of the failed court case to about $145,000.

Council’s total bill for external legal fees in the September quarter came to $161,674, including $27,171 for debt collection services and another $11,970 for the ongoing Trackcorp legal case.

Council’s 2015-16 management plan allowed just $185,553 for legal fees across the whole financial year, meaning 87 per cent of that budget has been exhausted in the first three months.

But the news is not all bad.

Council is still awaiting payment of legal fees from a previous Trackcorp case that will see around $1 million returned to the local coffers.

Mr Roach noted the looming budget black hole in an explanatory note in his report that read: “Actual expenditure for the year may exceed budget due to legal cost associated with McHugh Pet Hotel DA and Trackcorp legal case.”

And the burden of spiralling legal bills already appears to be having an impact on councillors’ decision making, with a number of them referring to the Dunkeld case during discussions last week about a proposed rock quarry at Napoleon Reef.

On this occasion councillors accepted the advice of senior staff to approve the quarry.