Central Coast Council is hoping to end the 2021-22 financial year with a $6M surplus, with budget adjustments from the 2021-2022 Quarter 2 Business Report adopted at the February 22 meeting.
Administrator Rik Hart said adjustments including an increase of $2M in operating income and a reduction of $1.2M in operational expenditure would see Council ahead of Budget.
“It’s a good position to be in after seven months,” he said.
”I’m hopeful we can do even better than a $6M surplus.
“Costs are well below where we thought we were going to be – the restructuring is now paying dividends.
“The cash position continues to improve – while we still have deficits, these are more than offset by unrestricted cash.”
The quarterly budget review statement showed a revised estimate of income and expenditure for this financial year, in reference to the estimates made in the Operational Plan for the same year.
Hart said the increase in operating surplus was an outcome of Council’s decisive action and commitment to financial recovery.
“Council’s Operational Plan sets out the achievements, goals and revenue policy, including estimates of income and expenditure,” he said.
“Council’s actions, including its productivity improvements, show its ability to achieve what it set out to do.”
Of the 66 actions or performance indicators of the Operational Plan; five are completed; 44 are on track; one has not commenced; and 16 are either delayed, on hold or have been closed, the majority of which are due to COVID-19 restrictions in place during Quarter 2.
Hart said Council’s focus continued to be on reducing expenditure, raising additional income, monitoring incoming cash flow, performing cash flow forecasts and ensuring more sustainable cash preservation.
“This quarterly budget review statement plays an important role in monitoring Council’s progress against the Plan,” he said.
“While we have a long way to go, Council has continued to make progress in strengthening our financial position.”
Terry Collins