The Greater Geelong Council will hold a special meeting on Wednesday 12 October to consider the City’s financial results for the 2021-22 year.
The draft financial statements to be discussed at the meeting indicate that the City returned to an operating surplus in 2021-22 after two years of deficits as a result of the COVID-19 pandemic.
The operating result, a $10.6 million surplus, is ahead of the budgeted deficit, and has been largely driven by $7.65 million in Commonwealth Grants Commission funding received earlier than expected.
Staff costs of $7.3 million under budget were another significant contributor to the result.
The statements also reveal that the City invested a record $195.7 million in capital works during 2021-22, including $32 million on parks and public open space and $24.8 million on roads.
Investment in community facilities as part of the capital works program during the financial year included:
- Start of construction of the Northern Aquatic and Community Hub in Norlane ($5.2m) and North Bellarine Aquatic Centre in Drysdale ($2.5m);
- Completion of the Leisurelink pool upgrade in Waurn Ponds ($6.8m);
- Completion of new pavilion and change facilities at Hume Reserve, Bell Park ($2.5m)
- Construction work on the new Drysdale Library($2.4m); and
- Sports lighting upgrades at reserves across the region ($1.5m).
A further $71.6 million went towards construction of Wurriki Nyal, the City’s new administrative offices at 137 Mercer Street, which was completed under budget in July.
The City’s comprehensive result was an accounting surplus of $141.4 million.
Of that figure, $80 million is attributable to non-monetary assets handed over by developers such as new drainage, roads and footpaths, which are now the City’s responsibility to maintain.
A further $29.3 million was from developer cash contributions, which will be invested back into community facilities in the near future, and $17.8 million was from capital grants.
Following a revaluation of all assets, the City’s asset base is now valued at $4.2 billion.
To accommodate its growing asset base, the Council is budgeting to progressively increase its annual spend on asset renewal over the next 10 years.
Mayor Peter Murrihy:
Getting back in the black with our operating result is a sign that we are managing our funds responsibly, but does not change the fact that we are under significant financial pressure.
With Greater Geelong’s high rate of population growth and an increasing number of community facilities, roads, footpaths and other assets to maintain, we need to budget very carefully over the coming years to ensure we remain financially sustainable.
The recent rapid escalation of costs across many aspects of the economy add a further layer to the challenge.
Councillor Anthony Aitken, Chair, Finance portfolio:
What the annual financial report shows us is an accounting surplus of $141 million, which is being driven by development assets gifted to the City from the urban growth areas in Geelong.
These assets are welcomed by residents, but they do add to our responsibilities and place further pressure on future budgets to maintain them.
Council is also proud that despite the challenges of COVID-related restrictions and supply chain constraints, the City was still able to deliver a record capital works program spend during the 2021-22 financial year of $195.7 million.
This is a fantastic achievement to continue to invest in Geelong during uncertain economic times.
The special meeting will be at City Hall on Wednesday 12 October, starting at 5.30pm. It is open to the public and will be livestreamed here.
The full financial statements are available now within the meeting agenda.
