The latest quarterly finance report considered by Council at their April meeting reveals a significant improvement in the Shire’s financial position, with strong cost savings delivering a healthy budget surplus and improved cash reserves — a welcome change from the $2.1 million forecast deficit.
Covering the nine months to the end of March, the report shows Council is running an operating surplus of $10.36 million, well ahead of the budgeted $5.84 million for the three-quarter mark. This 43% improvement is largely the result of dramatic cuts in spending on consultants, contractors and general operating expenses.
According to the report, Council has saved $2.8 million in operational costs, with $2 million of that from reduced payments to contractors and consultants, and another $700,000 trimmed from materials and consumables. Council staff have deliberately reined in spending to respond to rising costs and future uncertainty, while still maintaining essential services.
The budget has also been boosted by an unexpected windfall — $900,000 in unplanned operating grants — giving Council extra breathing room in the current financial year.
Spending on capital works is lagging well behind budget expectations. Of the $17.79 million allocated for capital projects this financial year, only $5.3 million (30%) has been spent so far. Based on current progress, just 68% of the total capital budget is expected to be used by 30 June, with the remainder to be carried over into the 2025/2026 financial year.
While this under-spending may delay the delivery of some projects, it also reflects cautious financial planning, allowing Council to maintain a stronger cash position in the short term.
Council’s unrestricted cash position is forecast to reach $777,000 by the end of June, up from an initial projection of just $295,000 because of careful cost management and some one-off gains.
This improvement is supported by several additional factors, including $370,000 in income recovered from the 2022 storm response, not originally included in this year’s budget, $100,000 more in investment interest than expected, and a $50,000 reduction in spending on corporate training and development.
Council will continue to monitor cost pressures and adjust forecasts as needed. Council officers have committed to remaining agile in response to changing conditions and will keep the community updated on any significant changes.
Despite the improved financial position, Council’s application to the Essential Services Commission for a 10% rate increase in the coming financial years remains in play. A decision by the ESC on Council’s application is pending.
The full report is available on the Council’s website, along with details of capital and special projects.
