MURRINDINDI: Underlying deficit of $5.5 million
Murrindindi Council’s underlying deficit for the 2024-25 financial year is expected to be $5.5 million.
“Forecast revenue for the year has risen by $12.29 million, whilst forecast expenditure has increased by $10 million. The increases in revenue are driven by increases in operating grants of $8.7 million, primarily related to flood recovery and $2.7 million in capital grants, including the first instalment of $1.2 million for the Eildon Key Worker Housing Project and $696,000 for the Roads
to Recovery program,” said a report to Councillors.
“Additionally, user fees and charges have increased by $430,000 for the Yea Saleyards and $137,000 for Recycling and Waste Management.
“There is a forecast increase in expenditure of $9.3 million for materials and services, partially offsetting the grant funding, $8.2 million of which is related to funded flood recovery and repair works.
“Overall, with these adjustments the operating surplus is expected to increase from $2.9 million to $5.2 million, while the underlying result, which removes capital grants from the calculation, remains relatively unchanged, with an underlying deficit of $5.5 million.
“The Cash statement shows a forecast net decline in cash held of $3.6 million, primarily due to the deferring of borrowing to the next financial year.
“It is also noted that the revised budget figure for total unallocated cash in December was reduced rom $10.4 million to $5 million.
“Again, this reduction primarily results from the deferral of $3 million in interest-bearing loans and borrowings, as well as the establishment of a new reserve for Council’s commitment to the Elidon Key Worker Housing Project.
“A further report on funding for the Eildon Key Worker Housing Project will be provided to Council in March 2025,” the report noted.