Council Addresses $6.37 Million Deficit and Strengthens Financial Management
The 2023/2024 financial year was a challenging one for the Council, with leadership changes and a high turnover in the finance team creating instability and a significant loss of corporate knowledge. As a result, our Annual Report shows a deficit of $6.37 million.
Initially, the Council budgeted for a $3.44 million deficit, with a clear plan to manage costs and close the gap. However, despite assurances provided by the finance leadership throughout the year that we were on track, the reality was different, and the shortfall increased instead by 2.93 million.
Several factors contributed to this, including higher than expected asset revaluations resulting in increased depreciation expense of $2.3 million. High staff turnover saw a heavier reliance on consultants in our Building and Planning departments to ensure we were still able to meet our statutory obligations and deliver services for our community. Additional expenditure for this area was partially offset by increased revenue with a net effect of approx. $883K. Insurance premiums were $380K more than budget, as were contractors for the Democracy and Advocacy area by $370K.
Moving forward, we are committed to stronger financial management by:
- 2024/25 Annual Plan – the adopted enhanced annual plan does not have a planned deficit. Since its adoption, some shortcomings in the budgeting process have been identified and we will soon be putting an item to Council to proactively address this.
- Improving transparency – requiring monthly financial updates that compare actual spending to the budget.
- Preventing cost overruns – no additional spending beyond the budget without Council approval.
- Setting clear performance goals – our CE will be accountable for better financial oversight, internal controls, and promoting a culture of responsibility and cost-consciousness among staff.
Looking ahead, we are confident this situation will not repeat. Our new CE and Executive Leadership Team is fully aware of the challenges we’ve faced and is focused on bringing back strong financial discipline and responsible management.
