Strategic Objective 5 - Responsible Financial Sustainability
Financial Sustainability
Cash
Council plans for a favourable net cash inflow from operating activities to provide funds for both the day-to-day operations as well as for its capital works program. The net cash inflow from operating activities for 2006/07 was $22.9M.
Council's cash position at June 30, 2007 was $49.2M, an increase of $2.2M from the prior year end, ensuring its cash investment policy was maintained. Whilst Council had budgeted for a net cash outflow for this financial year, the combination of the receipt of external funding for capital projects in advance of their construction and the slower than anticipated progression of some capital projects has resulted in a favourable cash position at year end. With the Clayton Community Centre project due for completion late 2007, Council's 2007/08 - 2010/11 Financial Plan identifies a significant net cash outflow in the 2007/08 year.
Council is statutorily required to retain cash reserves to cover Drainage, Carparking and Public Open Space Reserves (which provide a source of funds for eligible capital projects only) as well as to cover committed funds such as Long Service Leave entitlements.
In June 2006, Council set up a discretionary reserve to provide a source of funds to meet future maintenance and upgrade requirements at Council's Residential Care Facilities. A further $1M was transferred from accumulated surplus to this reserve at year end.
Published: 22 November 2007
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