The 2017-18 quarter one business report of the Central Coast Council included an operating surplus of $195.5 million, $32.1 million better than budgeted.
A large surplus is not unusual for the beginning of the financial year, as Council is required to include its whole year’s rates income when it is levied.
The capital works budget for the financial year has been revised upwards to a total of $227.8 million, an addition of $17.4 million made possible by grant funding of $15.9 million.
Capital expenditure for the first quarter was half that budgeted, $22 million spent in comparison to $45.3 million budgeted.
The proposed operating surplus for the current financial year, excluding capital grants and contributions, is forecast to decrease by $11.4 million, to result in a deficit of $9.5 million.
“This is predominantly due to the prepayment of half of Council’s 2017-18 Financial Assistance Grant (Federal Government Funded FAG) in June 2017, which had a favourable impact on the 2016-17 financial statements, and an unfavourable impact on 2017-18.
“Council will be notified of any prepayment of the 2018-19 financial year FAG once the Federal budget is released in May 2018.
“Council is still in a strong financial position and the operational plan is fully funded with the funding received in 2016-17 and 2017-18 reporting periods.
“The proposed operating surplus, including capital grants and contributions, is forecast to increase to $57.5 million from the original budgeted operating surplus of $30.1 million, an increase of $27.4 million, due primarily to the recognition of capital grants.
Agenda item 3.5, Nov 27
Central Coast Council ordinary meeting