This is a summary of our performance for the 2024-25 financial year. You can find more information in our Financial Report and Performance Statement from our Independent Auditor in the full annual report.
Operating position
Council's net operating surplus for 2024-25 stands at $30.60 million, which is higher than the original budgeted surplus of $14.53 million. The favourable variance was driven by higher operating grants of $6.16 million, primarily due to the early receipt of 2025-26 Federal Assistance Grants. There was also higher than anticipated interest income of $4.95 million due to current market conditions, an additional $3.78 million in unbudgeted capital grants and $520,000 higher in user fees. This has been partially offset by a reduction in cash contributions by $2.35 million.
The adjusted underlying result of Council, after removing non-recurrent capital grant income, monetary contributions and non-monetary asset contributions is $22.43 million.
Liquidity
The working capital ratio, which assesses Council’s ability to meet current commitments, is calculated by measuring our current assets as a percentage of current liabilities. Our result of 332% indicates a satisfactory financial position.
Obligations
Council ensures it maintains infrastructure assets at expected levels while continuing to deliver the services needed by the community. We invested $50 million in renewal works including the renewal of buildings ($18.01 million), roads ($13 million) and drainage ($4.81 million) during 2024-25. This was funded from capital grants of $5.00 million and cash flow from operations of $45.00 million. At the end of 2024-25, Council’s loans and borrowings repayment ratio, measured by comparing interest-bearing loans and borrowing repayments to rate revenue, was 5.21%.
Asset renewal ratio is measured by comparing asset renewal and upgrade expenditure to depreciation and was 125% in 2024-25. This is a reduction on previous years due to a review of the timing of planned renewal projects, resulting in some planned works being deferred to be undertaken in future years.
Stability and efficiency
Council generates revenue from rates, user fees, fines, grants, and contributions. For 2024-25, the rates concentration, which compares rate revenue to adjusted underlying revenue, was 75.31%. The Council heavily relies on rates due to statutory restrictions on many fees and charges, and the insufficient increase in payments from the Victorian Government to adequately fund services. In 2024-25, the adjusted underlying revenue improved primarily due to the timing of the Federal Assistance Grants, with 50% of the 2025-26 allocation being brought forward to the 2024-25 financial year.
