Administrator's Message - Council on track for financial recovery
Wednesday, 1 September 2021
Last week's Council meeting saw the promise of monthly financial reports and sharing information about Council’s financial position finally come to fruition, with a clear line of sight for the community into our financial position month to month.
These monthly reports will provide consolidated financial information relevant to the operations, capital expenditure, funding and cash position of Council, including restricted and unrestricted funds position.
Council’s draft financial report for the 20/21 year shows we are on track to financial recovery with an operating result deficit of $60.7M compared to the Q3 forecast deficit of $115.1M and FY20 deficit of $88.7M. Our operating expenditure for year end 30 June 2021 was $42.8M under the Q3 forecast.
Council has managed to reduce expenditure and maintain income resulting in a small surplus, which is excellent news for the short-term sustainability of the organisation.
However, Council’s long-term financial sustainability is not yet assured. In three years’ time we will be faced with an annual income loss of $25M. Without maintaining the 15 percent SRV for the life of the 10-year Long Term Financial Plan, Council may again find itself in a dire financial situation which is why we will be speaking with our community in the coming months about the next special variation to IPART.
Rik Hart, Administrator
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Last updated : Wed 1 Sep 2021
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