Council finances are looking good

Administrator Rik Hart is being asked to change the wording of the Acknowledgement of Country

Total ordinary rates collected by Central Coast Council last financial year amounted to almost $200M.

Water and sewer rates and charges brought in another $184M and user fees and charges including tipping, pool entry etc brought in $164M.

The numbers were revealed in the final 2022-2023 Consolidated Financial Reports for Council and its Water Supply Authority, adopted at the October 31 Council meeting.

Total income from continuing operations for the year was $777.4M.

Council’s actual net operating result (excluding capital grants and contributions) was a $35M surplus, up from the original budgeted net operating result of $9.8M surplus.

This was largely attributable to the advance payment of the 2023-2024 Financial Assistance Grant from the Federal Government being higher than originally budgeted, as well as increased grant amounts in roads and bridges funding.

Total expenses were up by more than seven per cent last financial year.

Employee costs were up by about 2 per cent with Council attributing the variance to an increase in provision for employee leave entitlements and increased workers compensation payouts due to a higher number of work injury damage claims in the financial year.

“These unfavourable impacts were partially offset with savings because of higher than expected vacancies,” Council said.

Depreciation went up 10 per cent ($16.1M) due to the impact of revaluations recognised after the 2022-2023 original budget was determined.

“The increments increased the asset base substantially, which increased depreciation expense,” Council said.

A $19.4M increase in fees and charges was largely attributable to 2022-2023 being a non-COVID affected financial year.

Council said this resulted in increased revenue through increased use of various recreational facilities such as holiday parks and pools, resulting in higher fee revenue than budget.

Council met or exceeded five of the six Local Government Industry indicators, only failing in having more than five per cent outstanding payments in Rates and Annual Charges.

This increased from 4.75 per cent in 2021-22 to 6.6 per cent in 2022-23.

The industry indicator is less than five per cent.

Operating Performance Ratio, which measures how well Council contained operating expenditure within operating revenue and needs to be more than 0 per cent, was 6.19 per cent.

Own Source Operating Revenue Ratio, which needs to be above 60 per cent, was 78.19 per cent.

It measures Council’s fiscal flexibility and the degree of reliance on external funding sources such as operating grants and contributions.

Unrestricted Current Ratio, which measures working capital, was better than the indicator, as was Debt Service Cover Ratio.

The Cash Expense Cover Ratio, which needs to be at least three months, was up to eight months.

This liquidity ratio indicates the number of months a Council can continue paying for its immediate expenses without additional cash inflow.

For the water supply authority, or Council’s water and sewer portfolio, the operating deficit before capital grants and contributions for the 2022-2023 financial year is a deficit of $1.1M.

The operating surplus, including capital grants and contributions, is a surplus of $33.5M.

The operating result before capital grants and contributions in 2022-2023 shows improvement of $9.1M on the prior year.

Corporate Services Director Marissa Racomelara presented the statements to the meeting, saying that they were completed on time, with an unmodified audit opinion and with a modest surplus.

NSW Auditor Caroline Karakatsanis said she was pleased to issue a clean audit opinion.

Administrator Rik Hart said Council was back to business as usual.

“We will be leaving this Council in very good shape when councillors come in next year,” he said.

Merilyn Vale