For Immediate Release 10/02/2021
Authorised by Anthony O’Reilly
Hilltops Council financial position 30 June 2021
Council has recently presented their 2021 Audited Financial Statements. The statements show that Council’s cash reserves have been depleted through years of losses prior to capital grants. Capital grants are one off contributions allocated by State and Federal Governments to assist in the provision of community assets such as roads, sporting facilities and public amenities. The rates, fees and charges paid by residents to ensure we can finance our day to day operations are not covering what it costs to run those operations.
The draft Financial Statement results for 2020/21 showed a Council operational result before capital grants improvement from a loss of $(10.6)M in 2020 to a loss of $(5.6)M in 2021 (this is known as a deficit). This was primarily due to an increase in income of $2.0M and a reduction in expenditure of $3.0M. In addition, the capitalisation of $4.9M of wages for capital works carried out assisted with the delivery of infrastructure programs.
Council’s borrowings (debt) as at 30 June 2021 was $17.8M. Council’s borrowings are for infrastructure renewals including Roads, Buildings, Sporting Facilities, Libraries, Water and Sewer Mains and Sewage Treatment Works.
We acknowledge the challenges we face to become financially sustainable and by working together we can meet these challenges.
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