Council is in receipt of its annual audited financial statements for 2020/21 and is making copies available for public review ahead of their presentation at the Ordinary Council meeting to be held on 24 November 2021.
The NSW Audit Office has given the financial statements the thumbs up by issuing an unqualified audit opinion, and the auditor will be on hand at the November meeting to speak to the audit.
Leeton Shire ended the 2020/21 financial year with cash reserves of $47M, a slight decrease from $50M last year but still significantly higher than $26M in 2014/15. Of those reserves, $36M is ring fenced for water and sewer services.
The operating results delivered surpluses in Council’s special purpose water and sewer funds at year end, helping Council’s consolidated accounts to record a surplus of $2.5M. However, once capital grants and contributions are excluded, Council finished the year with an overall operating deficit of $4.4M.
Council’s General Manager Jackie Kruger explained that many of the contributing causes for the deficit were outside Council’s direct control, and most were mostly non-cash items.
“A change in accounting has required Council to catch up 10 years of landfill remediation provisioning in one year, delivering a (non-cash) hit of $2.6M to the bottom line. Other impacts included increased depreciation expenses following a revaluation of council’s transport infrastructure network (up $1.0M), historically low interest earnings (down $220K), low water trading income (down $603K) and reduced contracted works by Transport for NSW (down $500K). Had these items not changed from the previous year, Council would have achieved an overall surplus.”
Even though the deficit is the result of a series of one-offs, Mrs Kruger said that Council cannot rest on its laurels.
“The reality is that rates capping means we are constantly battling increased costs with insufficient or unreliable revenue for our general operations, exacerbated by state government cost shifting,” said Mrs Kruger.
“This vulnerability has been masked in recent years by excellent water trading and investment earnings, but both of these fell in the last financial year in line with the market.
“The new Council is going to have to resurrect some of the hard conversations we started in 2016 about whether to reduce services or increase income (including a possible rate variation) if we are to achieve long term
financial sustainability. Management is also constantly seeking
ways to improve operational efficiencies,” she said.
Emeritus Mayor Paul Maytom said that while the overall result was not ideal, it can be explained and, except for the quantum of the landfill remediation provision required, was not a surprise to Councillors who are briefed about the state of Council finances each quarter.
“While we can’t bury our heads in the sand about the general fund, we also need to keep some perspective. The general fund may be groaning but we have very strong cash reserves and are the envy of many Councils,” said Emeritus Mayor Maytom.
Emeritus Mayor Maytom added he was pleased to have led a progressive Council and is glad that Leeton Shire has made the most of the grant funding that has been available in recent years.
“The Shire is looking better than ever and there is more to come. Whether it’s the artwork along the Whitton main street or the new transfer station, the splash park in Yanco, the upgrade of the Leeton Showground Grandstand or the Wade Avenue upgrade and new pool in Leeton, I feel extremely proud of what has been achieved for the Shire,” said Emeritus Mayor Maytom.
The Councillors thanked the staff, and especially the finance team headed by Manager Lawrence Amato, for collating the financial statements and supporting the auditors with their task.
The 2020/21 Leeton Shire Council Audited Financial Statements and Auditor’s Reports will be available on the Council website www.leeton.nsw.gov.au from Friday 12 November 2021.
Hard copies will also be available for viewing by the public at the Leeton Shire Council Administration Office, Leeton Library, Yanco Shop and Whitton Post Offices.
Anyone wanting to provide feedback to Council can do so by:
EMAILING: [email protected] or WRITING A LETTER TO:
The General Manager, 23-25 Chelmsford Place, Leeton, 2705.
Submissions close at 5pm on Wednesday 1 December 2021.
