EDITORIAL: No room for complacency
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ALBURY Council has achieved an unexpected $1.2 million surplus for 2013-14, boosting its chances of balancing the books this financial year.
The council’s financial statements will be tabled on Monday night, revealing the better than forecast result.
The general fund would have recorded a small deficit in 2013-14 if half of the city’s financial assistance grants were not received in advance.
The improved result can be attributed to an operating surplus for the water and sewer funds.
The council has increased the price of its water and sewer services, and water consumption was higher last year compared with previous drought years.
On top of the overall operating surplus, the council accounted for capital income of $19.3 million which included the recognition of cash and in-kind developer contributions of $12.5 million and also recognition of artwork previously donated to council of $5.6 million.
Developer contributions rose from July 1 this year and the artwork had not been previously factored into the figures.
The council’s finance and administration committee chairman Cr David Thurley said the result was pleasing.
“This doesn’t happen by accident,” he said.
“This council has made a long-term commitment to manage our deficit and return the city back to a balanced budget.”
But he said there would be no time for indulgence with the pressure on to maintain the financial result.
The federal freeze on indexing financial assistance grants will leave a budget hole of more than $1 million over the next four years.
“In addition to that, every year NSW councils absorb an estimated $520 million in costs shifted from state and federal governments on local government,” Cr Thurley said.
“That situation is not likely to change any time soon so the pressure is on to maintain these good results.”
The financial result comprises total operating income of $102 million, operating expenditure of $101 million and capital works of $27.5 million.
Albury general manager Frank Zaknich said the ongoing service and efficiency review had played a significant role in the result.
“The council has once again been proactive in managing its budget and expenditure while continuing work to maintain and improve the city’s infrastructure,” he said.
“The council remains committed to continuous improvement and achieving value for money with every dollar spent.”