MURRAY River Council has been told its financial performance is manageable, but ongoing operating deficits at current or higher levels will have “significant impacts on the medium to long-term financial sustainability”.
The council was presented with the quarterly budget review, which provides an updated estimate of the income and expenditure for the 2024/25 financial year, comparing it against the originally approved budget, at its ordinary meeting last week.
Quarterly budget updates provide the opportunity for adjustments to be made to the existing budget based on actual financial performance during the year.
All figures in this review were as at December 31, 2024.
The review noted a revised estimated operating surplus from $8,580,213 to $7,178,466.
The $1.4 million decrease was due to adjustments in property sales that were now not expected to settle within this financial year.
Operating expenses were expected to increase by $1,104,221, bringing the total to $71,148,740.
This increase was driven primarily by additional materials and contract costs for programs funded by third parties.
“While the council’s financial position remains manageable at the end of December 2024, the report highlights the potential risks of ongoing operating deficits,” the report said.
“If deficits continue at current or higher levels, they could have a significant impact on the medium to long-term financial sustainability of the council.
“Murray River Council remains committed to responsible financial management and will continue to monitor its financial position closely to ensure long-term sustainability.”
