City delivers budget surplus despite operating deficit

THE City of Greater Geelong has posted a comprehensive 2023-24 budget result of an almost $180 million surplus, according to documents tabled at the council’s October meeting.

During the meeting, the council presented, and gave in-principle approval to, the city’s audited annual financial statement and draft performance statement for the 2023-24 financial year.

While the statements, which provide a summary of the city’s performance against the 2023-24 budget, indicated a significant surplus, acting chief executive officer Troy Edward said the figure does not represent a windfall for the council.

“It is largely made up on non-monetary assets handed over by developers such as new drainage, roads and footpaths, which are now our responsibility to maintain, as well as developer cash contributions for future community facilities,” he said.

Although budgeted to be a small surplus, the city’s operating result for the financial year – which recognises all revenue and spending for council to operate – sits at a deficit of $17.6 million.

However, Mr Edwards said the result was a matter of timing, with more than $24 million in financial assistance grants from the federal government being paid a week later than anticipated, arriving during the first week of the 2024-25 financial year.

“The result does not make a material difference to the council’s operations or financial sustainability,” Mr Edwards said.

“It is just a matter of those payments from the Australian government arriving in our account a few days after the end of the financial year.

“We would otherwise have met our operating budget and delivered a small surplus.”

The tabled statements show the city delivered $140 million in capital projects over the 2023-24 financial year, comprising $75 million in new assets, $52 million in asset renewal and $13 million in upgrades.

The city is now responsible for the upkeep of almost $5 billion worth of property, infrastructure, plant and equipment.

Speaking at last week’s meeting, deputy mayor Anthony Aitken said the 2023-24 budget had been the most challenging yet for the Geelong council and took the opportunity to criticise the state government’s rate capping system.

“Every single year our ability to generate income is less than what our expenditure is actually growing at every single year.

“That means every single time that the community asks us to actually deliver a new service, the reality is we have to actually cut another service to be able to deliver that new service.

“It’s like having both hands tied behind your back.”

The city’s financial and performance statements have been through an official audit process by the Victorian Auditor General’s Office and will be published later this month in the city’s annual report.