Knox City Council expects an operating deficit of $6.356 million for the 2022/23 financial year, according to a report tabled in the Monday 27 February council meeting.
The quarterly performance report, prepared by the council finance operations and business intelligence staff, covers the last three months of 2022.
Cr Nicole Seymour said it is well worth the community having a look at the report to see how the council is progressing.
“The bottom line of the report though is that tells us that we are in a sustainable position. Although we’re still walking a very fine edge,” she said.
“It’s not an easy landscape for us financially going forward, which is a constant theme that we’ve been having meeting after meeting and this report, which is at the end of December, really highlights as well.”
The forecasted deficit includes the transfer of the Knox Regional Sports Park, worth $25.421 million, to the Victorian State Government.
Knox City Council’s cash and financial assets were $13.473 million as of 31 December 2022.
Cr Seymour said there are some “good achievements listed” in the report.
“All in all, this is predominantly an administrative report out on how we’re tracking and as you’ll read as you go through it,” she said.
“It’s a pretty comfortable report.”
Of the 51 initiatives included in the 2022/23 council plan, five have been completed and 41 are on schedule.
The report states the overall financial position was “satisfactory,” with the council seeing a $700,000 increase in supplementary rates income, a $600,000 reduction in child care parent fees and $900,000 in gran income “due to lower utilisation and kindergarten being offered to families for free in 2023,” and a $700,000 decrease in traffic enforcement fines due to delays in the council’s parking strategy being implemented.
For the financial year, the council is forecasting revenue to reduce by $1.5 million and expenditure to decrease by $3.4 million compared to the amended budget.
