Council's 2024–25 Annual Report reveals encouraging progress towards long-term financial sustainability, with several key indicators showing positive outcomes after a year of cost cutting measures and revenue raising.
Council has significantly reduced its annual operating deficit (before capital grants and contributions) from $40.5 million in 2024 to $1.2 million in 2025 (consolidated result) and reduced debt by $17.93 million - from $193.88 million in 2024 to $175.95 million in 2025 - by paying down loans and reducing reliance on new borrowings to fund capital works.
Mayor Patricia White said she was pleased to see the start of 'green shoots' as Council started to realise the benefits of its financial discipline.
"There's been some significant work done by this Council to address our financial position and while I acknowledge that there's a long way to go, I'd like to thank Councillors for making the tough decisions we've had to make to reduce costs and increase revenue, which are now starting to pay off," Cr White said.
"I would particularly like to thank the staff for their ongoing commitment to cut costs and raise revenue through innovative initiatives, while still delivering services for the community," she said.
"These results reflect our commitment to responsible financial management and the implementation of our Sustainable Futures Financial Plan. While challenges remain, particularly in asset management, we are building a stronger foundation for the future.
Key highlights of the 2024-25 Annual report include:
- The reduction of debt by reducing total borrowings by $17.93 million from $193.88 million in 2024 to $175.95 million in 2025.
- Growth in cash reserves with non-externally restricted cash increased by $15.1 million, rising from $34.2 million in 2024 to $49.3 million in 2025, strengthening Council's liquidity position.
- The establishment of a Financial Sustainability Reserve to track savings generated through its Sustainable Financial Plan 2024–2029, delivering $4.1 million in benefits through salary savings, workplace changes, and service reviews.
- A boost in revenue through the sale of 12 land parcels across the Shoalhaven which generated $11.3 million during the financial year.
- A thorough inspection of Council's 1,900 km road network resulting in a $278 million write-down of transport assets. This proactive approach ensures accurate asset valuations and informs future investment priorities.
Council's first Quarterly Report for the 2025-26 year has also been published showing improvements in the General Fund forecast structural deficit, from $18.5 million in original budget to $16.4 million. Other positive results show a $4.3 million surplus in the Water Fund and a $15 million surplus in the Sewer Fund.
Mr Constance said positive results would continue this financial year with improvements being implemented across the business including the reduction of fleet vehicles and ongoing service reviews of internal businesses to find efficiencies.
"This good result is the outcome of our discipline and hard work, and I recognise we will have to maintain the same focus and determination in the coming years to continue on this trajectory," Mr Constance said.
