Murray River Council has completed its first quarterly budget review for the 2025–26 financial year, showing a steady financial position with a continued focus on renewing and maintaining community assets.
The review, which is a standard part of Council's financial management process, outlines any adjustments to the original annual budget based on updated information from the first quarter of the year.
Mayor, Cr John Harvie said the review demonstrates Council's commitment to responsible budgeting and long-term sustainability.
"We're continuing to manage our finances carefully to ensure we maintain strong services and infrastructure for our communities."
"This quarter has seen some sensible shifts in how we allocate funding, with a greater focus on renewal projects to look after what we already have, rather than taking on new assets that increase future maintenance costs."
Key points from the review:
- Capital works: The capital program has reduced by $0.6 million, reflecting a shift toward renewal projects carried over from last financial year.
- Funding sources: Council's funding position improved by $2.4 million, thanks to the use of reserves and previously unspent grants.
- Revenue: Rates and charges increased slightly due to regional growth, contributing to a 1% overall rise in income.
- Expenses: Expenses rose by 3.4%, mainly due to updated accounting treatments for software projects and higher depreciation following asset revaluations.
- Operational balance: When capital revenue is excluded, the result shows a $6.2 million deficit (an increase of $2.2m) mainly due to adjustments between capital and operational projects.
Cr Harvie said the reclassification of existing projects from capital to operational has had the biggest impact on the expenses and deficit.
"Following an accounting standards review, we've moved some of our capital project activities into the operational category. This largely relates to intangible assets and projects such as software renewal and project implementation."
Council's capital works program remains well on track, with $4.1 million spent to 30 September and most project delivery planned for the second half of the financial year.
Cr Harvie said while the financial position of Council is in a satisfactory position following the review, achieving long term financial sustainability continues to be an important focus.
"To ensure we are on the path to financial sustainability, we need to continue our advocacy efforts to address funding shortfalls from state and federal government, along with the revenue constraints imposed upon us."
Murray River Council's full Quarterly Budget Review is available to the public on council's website.
