A growing surplus and a decreasing infrastructure backlog are the cornerstones of a 2017/18 financial year result that Lake Macquarie mayor Kay Fraser says shows the city is in “a fantastic position”.
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The $10.9 million net operating surplus, which does not include capital grants or contributions, is up 27 per cent on the previous financial year.
The net result jumps to $75 million when capital revenues are included, a report tabled for councillors this week said.
The figures show a record $116.5 million capital spend – up 27 per cent on 2016/17 – and the council’s net worth is up $100 million to $2.6 billion.
Council had a 2.4 per cent infrastructure backlog for 2017/18, down by 0.1 per cent from the previous financial year.
“This is predominately a result of council prioritising renewal works, which included spending $23.1 million on replacing roads and $2.2 million replacing existing footpaths,” Cr Fraser said.
“These are just two examples of upgrading old facilities with new ones.”
A council spokesperson said in a statement the city had $2.75 to meet every dollar of liability and had contained debt “despite significant growth in our local government area”.
“This financial position is reinforced by council’s results meeting all Office of Local Government benchmarks,” the statement said.
Cr Fraser said the council was in a strong and stable financial position.
“This is a fantastic position for Lake Macquarie City Council to be in, with an operating result of $10.9 million,” she said.
The financial data also shows a 0.4 per cent increase in outstanding rates and annual charges – at 4.09 per cent for 2017/18 – while outstanding loan borrowings dropped by about $2.57 million to $82.13 million, year-on-year.
The audited financial statement will be presented at a public meeting at the council chamber at Main Road, Speers Point, at 4pm on Wednesday, November 7.