Shire’s finances reflect underlying deficit

THE Shire’s draft Financial and Performance Statements 2021/22 were presented at their recent meeting which received ‘in principle’ approval by councillors. 

The statements will be submitted to an auditor with two councillors to then certify them following completion of the audit. 

Features of the shire’s performance include $116.54m in revenue against a budgeted $91.57m. 

This was largely due to: 

• the receipt of $14 million in unbudgeted developer infrastructure contributions; 

• additional operating grants of $4.7 million including $2.8 million in financial assistance grants from the Commonwealth, $0.9 million for State Government funding for environmental restoration works and, $0.5 million for the outdoor dining initiative; 

• unbudgeted capital grants of $3.06 million including funding for the Rhyll Boat Ramp and Jetty and;

• additional rates and charges of $3.05 million due to the recognition of special charges related to the Pioneer Bay roads and drainage works.  

Rates and charges comprised $70.15 million (60.2 per cent) of the total operating revenue.  

The underlying result reflected a $0.7 million deficit, which is $1 million unfavourable to the budgeted surplus of $0.3 million

According to the shire, numerous factors impacted this result including:

• the gifting of the library assets to a new not- for- profit organization, MYLI; 

• the transition from an external service delivery model to an in-sourced council operated service at the Grantville landfill; 

• dissolution of the MAV Workcare scheme which has resulted in additional Workers Compensation insurance payments and; 

• additional costs associated with development planning. 

Net borrowings increased by $1.6 million from $15.7 million in 2020/21 to $17.4 million in 2021/22.  

While $36 million has been expended against the capital works program, of which $34.9 million has been recognised as capital expenditure. 

The remaining $1.1 million has been expensed as operational expenditure.   

The shire’s total expenses which include employee costs ($32,042m for year ending June 30, 2022), materials and services, depreciation, finance and borrowing costs was $92,577m, compared to $87,583m in 2021. 

A copy of the Annual Report for 2021-2022 will be presented to Council for the October 2022 meeting, which must be presented to the community no later than October 31.