Council & Business
18 July, 2022
Council in “strong” position heading into new financial year
The Central Goldfields Shire Council has moved into the new financial year in a “strong” position, according to the financial report noted at last month’s ordinary meeting. Councillors received and noted the finance report to May 31, 2022 at...
The Central Goldfields Shire Council has moved into the new financial year in a “strong” position, according to the financial report noted at last month’s ordinary meeting.
Councillors received and noted the finance report to May 31, 2022 at last month’s ordinary council meeting and noted an update to the year end forecast, an operating surplus of $7.5 million and capital works program of $15.4 million.
The report tabled to council states the organisation’s financial position moving into the new financial year was sound, with cash and equivalents totalling $21.3 million and no major concerns around operating or capital budgets.
Speaking during the meeting, councillor Gerard Murphy said he was pleased with council’s financial situation.
“I’m very happy with our financial report and the way we’re tracking,” he said.
“The income statement is tracking ahead of budget in the 11 months to May 31, 2022.
“This relates to the recognition of previously received grants as well as the rates notices being issued. This is forecast to reduce with the end of year accounts.
“The balance sheet remains strong with a strong cash position — the cash is anticipated to be drawn down on as the capital works program is completed.”
According to the report tabled to council, expenditure in the year to May was unfavourable to the budget due to depreciation and employee costs, however this was offset by a $623,000 decrease in expected contractor and material costs.
Cr Murphy noted that while the budget moving into 2022/23 was a good one, issues like rate capping limited the council’s ability to fully fund local services.
“Whilst this financial report is a good indication of where we are, it also relates that we are in a very tight situation,” he said.
“Every month it is tight and it’s very hard work done by our finance team to get this right and make sure everything’s run properly.”