In the black: Shire’s surplus close to expected figure

THE Surf Coast Shire has recorded a slightly smaller surplus than expected but is still finishing the financial year nearly $13 million in the black, according to its 2020/21 Financial Report.

Councillors considered this report, as well as their Performance Statement for the previous financial year, for in-principle approval at their meeting on Tuesday night.

By law, the council must give in-principle approval and sign the two statements so they can be submitted to the Victorian Auditor-General to issue an audit opinion and included in the shire’s annual report, which must be lodged by Thursday next week.

The Surf Coast Shire had $99.763 million in actual income in 2020-21, only $39,000 less than the budgeted figure.

Income was driven up by unexpected increases to both capital and operating grants of 30 and 26 per cent respectively, but was limited by factors including a 30 per cent drop in user fees and a 26 per cent drop in statutory fees and fines.

The shire’s total expenses for 2020-21 were $86.797 million, $951,000 higher than budgeted.

The finance cost of leases were 40 per cent less expensive than predicted and the amount of bad and doubtful debt was reduced by 36 per cent.

However, employee costs were a little over $2 million higher than budgeted and the $5.783 million in other expenses was more than twice the budgeted figure, mostly due to $2.485 million in non-cash landfill rehabilitation expenses and $416,000 of asset write-offs exceeding the budget.

The surplus for the year was $12.996 million, seven per cent less than the projected total of $13.956 million but higher than last year’s surplus of $9.49 million.

According to the Performance Statement, there was a net decrease in employees at the shire for the first time in recent years, with 58 employees starting with the organisation and 64 leaving.

“The transition of the Positive Ageing service (in-home aged care) to alternative providers has contributed to the higher-than-usual departures,” the report states.

The shire’s performance at the Victorian Civil and Administrative Tribunal continues to swing back and forth, with the 68.75 per cent figure of the council’s planning decisions being upheld at VCAT following results of 80 per cent last year, 46.15 per cent in 2019 and 50 per cent in 2018.

Kerbside collection waste diverted from landfill has increased from 48.99 per cent in 2019-20 to 64.25 per cent in 2020-21, largely attributed to the shire’s new four-bin system that diverts food from landfill.

Satisfaction with local sealed roads has hit a four-year high, with the shire recording a 63 per cent community satisfaction rating, up from 58 per cent in the previous financial year.

The percentage of active library borrowers has fallen, from 18.19 per cent in 2019-20 to 16.49 per cent now, but the report notes the definition for this indication was changed in 2019-20 so it is “not an accurate comparison” and now represents active library borrowers as an average of the past three financial years.