Council budget in surplus after $2.9 million turnaround

30 October 2018

Liverpool City Council has delivered an operating surplus for the 2017/18 year, a $2.9 million turnaround on the previous year.

“This is a great bottom-line result and reflects a financially responsible Council, using ratepayers’ money and assets wisely,” Liverpool Mayor Wendy Waller said.

“But this is not the only financial performance indicator to celebrate. Our expenses show great fiscal discipline.

“Council also spent less than was budgeted in employee benefits and on-costs; materials and contracts; depreciation and amortisation; and other expenses.”

Mayor Waller said Council also reached an important benchmark one year earlier than was planned – delivering a positive Operating Performance Ratio.

“This ratio measures Council’s ability to contain operating expenditure within operating revenue. Any result higher than 0 per cent demonstrates financial sustainability.

“On a three-year average, I am delighted to report that Council achieved a 1.73 per cent operating performance ratio.”

“That figure was -3 per cent in 2015/16. Strong performances in 2016/17 (2 per cent) and 2017/18 (5 per cent) pulled the average up over the three years.”

Council’s capital expenditure for the 2017/18 year was $60 million.

The audited financial statements will be on public exhibition for seven days and a summary of public submissions received will be presented to Council at its next meeting for consideration and adoption and/or amendment if necessary.