Ararat advertiser, Ararat Rural City Council, Budget, Surplus, Money, Quarterly Performance, Employees, jobs
ARARAT Rural City Council has more than doubled it's budget surplus for the six month period ending December 31, 2018. At it's February meeting, the council reported a surplus of $7.197 million, with the previous surplus of $3.078 million reported for the quarter to June 30, 2018. Council's income over the six month period to December 31 totaled $22.340 million, with rates and charges accounting for 62 per cent of that. The remaining income was derived from government grants, and user fees for services like home care, parking fees and venue hire fees. Total expenditure was $15.143 million, with employee costs accounting for 40 per cent and materials and services accounting for 30 per cent. The council recently underwent a staff restructure, which chief executive Dr Tim Harrison partly attributed the surplus to. "Employee costs have reduced significantly during the last six months based on some people leaving the organisation and not being replaced, but also based on a restructure that's been undertaken during that time as well," he said at the February meeting. Councillors were very supportive of the restructure and it's resulting impact on the budget. "I'm very pleased that you mentioned the reduction in spend in the area of employee costs," Councillor Jo Armstrong said at the meeting. "I regard that as a direct reflection of our council's faith in your ability as a leader of the council to implement and continue with ongoing restructure. "It's going to satisfy our long-term goals, so I commend you for the work that you're undertaking." Councillor Bill Braithwaite said he supported Councillor Armstrong's comments. "We need to understand that those savings that our CEO's made in the restructure are ongoing year on year, so they go straight to our bottom line and straight to our sustainability issues," he said. The value of council's assets also increased, from $18.429 million at June 30, 2018 to $23.628 million at December 31. However, cash and cash equivalents decreased by $5.405 million from $15.705 million to $10.300 million, though the report states that the end of year forecast is 'better than budget'. While you’re with us, you can now receive updates straight to your inbox each Friday morning from The Ararat Advertiser. To make sure you’re up-to-date with all the news from Ararat and districts, sign up here.
ARARAT Rural City Council has more than doubled it's budget surplus for the six month period ending December 31, 2018.
At it's February meeting, the council reported a surplus of $7.197 million, with the previous surplus of $3.078 million reported for the quarter to June 30, 2018.
Council's income over the six month period to December 31 totaled $22.340 million, with rates and charges accounting for 62 per cent of that.
The remaining income was derived from government grants, and user fees for services like home care, parking fees and venue hire fees.
Total expenditure was $15.143 million, with employee costs accounting for 40 per cent and materials and services accounting for 30 per cent.
The council recently underwent a staff restructure, which chief executive Dr Tim Harrison partly attributed the surplus to.
"Employee costs have reduced significantly during the last six months based on some people leaving the organisation and not being replaced, but also based on a restructure that's been undertaken during that time as well," he said at the February meeting.
Councillors were very supportive of the restructure and it's resulting impact on the budget.
"I'm very pleased that you mentioned the reduction in spend in the area of employee costs," Councillor Jo Armstrong said at the meeting.
"I regard that as a direct reflection of our council's faith in your ability as a leader of the council to implement and continue with ongoing restructure.
"It's going to satisfy our long-term goals, so I commend you for the work that you're undertaking."
Councillor Bill Braithwaite said he supported Councillor Armstrong's comments.
"We need to understand that those savings that our CEO's made in the restructure are ongoing year on year, so they go straight to our bottom line and straight to our sustainability issues," he said.
The value of council's assets also increased, from $18.429 million at June 30, 2018 to $23.628 million at December 31.
However, cash and cash equivalents decreased by $5.405 million from $15.705 million to $10.300 million, though the report states that the end of year forecast is 'better than budget'.
While you’re with us, you can now receive updates straight to your inbox each Friday morning from The Ararat Advertiser. To make sure you’re up-to-date with all the news from Ararat and districts, sign up here.
