It’s that time of year again when the council’s independent auditor presents the annual financial statements.
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The challenges of managing a finite budget against a growing wish list of services and more than $1 billion of assets that need maintenance are significant.
By working with the community to understand expectations and service needs, the council is then able to develop the annual operating plan and budget, which aims to deliver those services within the constraints of sustainable financial management.
Similar to managing a household budget, money needs to be earned, bills have to be paid, and savings need to be set aside for future needs.
It was pleasing to note that the auditor’s report confirmed that the council’s long-term plan to improve the overall financial position and ensure our operating expenses are within the income available is on track.
The council achieved a budget surplus of just over $2 million in the general fund for 2015-2016, which will be reinvested into ongoing operations. The funds for water and sewer have shown a deficit which will be reviewed and managed.
This result has been achieved through a strategy of reducing costs through efficiency savings, increasing income with the special rate variation, and reducing the council’s level of debt, so that more can be spent on maintaining our assets, such as roads and bridges.
There are still a number of areas of our financial management that need focus, including ongoing workplace efficiencies and finding cost savings within the council’s operations.
We also need to stay focused on sustainable sources of revenue and not rely on grant funding, as well as keeping debt to a level that can be paid.
We are awaiting feedback from the Office of Local Government concerning the revised Fit for the Future submission made earlier in the year, but the audited financial statements has provided a level of confidence for that assessment.