Toowoomba Regional Council (TRC) remains on track to deliver an operating surplus for the 2024/25 financial year after the adoption of Budget Review 1 at this week's Ordinary Meeting.
Councillors resolved to approve a $3.8 million increase to operational revenue and a $4.3 million increase to operational expenditure while maintaining an operational surplus for the year, reducing from $937,714 to $449,361.
TRC Financial Services portfolio spokesperson Councillor Gary Gardner said Council was continuing to carefully manage its financial position.
"Council's overall operational surplus is expected to be $449,361 as a result of the reforecast position with increases to both revenue and expenditure.
"Councillors approved a $4.3 million increase to operational expenditure to allow for a range of critical, and in many cases unavoidable, cost increases.
"This includes a $400,000 increase in building insurance premiums with an additional $700,000 identified for ongoing legal fees related to the Oakey PFAS matter and various cost adjustments that were unknown at the time of the original Budget adoption," Cr Gardner said.
"Council's financial sustainability constraints have impacted our ability to meet all requests received in Budget Review 1 with an additional $10 million in unfunded operational requests.
"Council has also modelled the financial impact of delivering on both the Asset Management Plans for each asset class within the $7 billion asset base and Cressbrook Dam Safety Improvement Project. Key sustainability ratios were then compared with the proposed sustainable approach to Budget Review 1, namely Council's Operating Surplus Ratio, Asset Sustainability Ratio and Unrestricted Cash Expense Cover Ratio.
"The ratios move outside of the sustainable limits of Council if both the Asset Management Plans and Cressbrook Dam Safety Improvement Project are funded, showing how acutely important it is to continue advocacy efforts for external funding for the Cressbrook Dam Safety Improvement Project," Cr Gardner said.
With the Budget Review 1 update finalised, TRC's Financial Services Team will begin work on the development of the 2025/26 Annual Budget, noting there will be a further opportunity to reforecast the end of financial year position at Budget Review 2, scheduled for February 2025.
