Central Coast Council’s finances have turned around, with Council working towards a strong long-term financially sustainable position, says CEO David Farmer.
His comments come following the receipt at the September 27 meeting of the August 2022 financial report and referral of the draft unaudited Financial Reports for both Central Coast Council and Central Coast Council Water Supply Authority for the period July 1, 2021, to June 30, 2022, to the Audit Office of NSW for external audit.
Farmer said Council was performing better than budget, which is a continuation of the trend from last year.
“We’re travelling well and I am optimistic going forward,” he said.
The August 2022 Finance Monthly Report reveals that Year to date (YTD) net result (including capital revenues) to August 31, 2022, was a surplus of $15.5M compared to the budget surplus of $9.2M.
YTD operating surplus (excluding capital revenue and asset sale profit/loss) was $7.6M compared to the budget surplus of $1M.
The 2021-22 draft Financial Reports show an operating surplus before capital grants and contributions of $47.3M and an operating result including capital grants and contributions (of $61.5M); a surplus of $108.8M
The variance between the actual net operating result (excluding capital grants and contributions) of $47.3M surplus and the original budgeted amount of $7.0M surplus sees a $40.3M favourable variance driven by achieving actions in Council’s Financial Recovery Plan.
Farmer said the financial results showed continued financial discipline and there was a sense that confidence in the organisation was returning.
“We have moved from two years of huge losses, almost $160M in total, into recording a solid surplus for the most recent financial year,” he said.
“The first two months of the current year show Council continuing to track a little better than budget.
“We have stabilised the organisation and we have begun to redirect funds from the budget surplus to invest in a number of key service areas, including road remediation, vegetation management and increased resources to improve development assessment timelines.
“We have moved from crisis to recovery.
“We are now looking to repay some of the crisis debt early and also listening to the community and directing some of the surplus into areas of community concern.”
Farmer said Council has met each performance target set in its newly adopted Financial Strategy for the two months to August 31 this year, except for the Water Fund’s unrestricted funds ratio.
“It is forecast that this ratio will remain negative for the next few months until improved financial performance moves the water fund into positive cash holdings,” he said.
Administrator Rik Hart said Council’s financial turmoil chapter had closed.
“Financial discipline and sound financial management are now embedded in the organisation’s DNA,” he said.
“Finance monthly reports are freely available online for the community and the Financial Strategy provides direction for decision making in the allocation, management and use of our financial resources.
“These are significant actions regulating the organisation’s financial discipline and are important tools to support a newly elected body.”
Source:
Media release, Sep 28
Central Coast Council