East Gippsland Shire Council has reported a net operating result of $25.4 million for the 2024–25 financial year, marking another year of solid performance despite rising costs and several project deferrals.
According to the draft Annual Financial Statements the shire’s result was $3.55 million below the budgeted $28.96 million surplus, largely due to higher employee expenses and significant asset write-offs.
While total income grew by $10.2 million (6.3 per cent above budget), this was outweighed by expenditure that
exceeded forecasts by $13.7 million (10.4 per cent over budget).
Total operating income reached $171.6 million, driven by early grant payments and increased user fees, while operating expenditure rose to $146.2 million.
The council also invested $43.8 million in capital works, though some major projects were deferred to 2025–26 due to contractor and supply chain delays.
The written-down value of the shire’s property, infrastructure, plant, and equipment now stands at $1.375 billion,
underscoring the municipality’s strong asset base.
Despite these challenges, East Gippsland Shire maintains a robust cash position,
with year-end cash and equivalents of $86 million.
However, this figure represents a $31.1 million decrease from the previous year, largely due to the completion of capital
projects and the early recognition of grant income.
Of that total, $61.5 million is restricted for future commitments, including $36.8 million for carried-forward capital works.
Financial indicators within the report point to a stable and low-risk position overall.
The shire’s working capital ratio sits at 333 per cent, well above the 150 per cent target, indicating strong liquidity and capacity
to meet obligations.
Other key measures such as asset renewal (103 per cent), indebtedness (17 per cent), and unrestricted cash (171 per cent) all received low-risk ratings.
While the underlying surplus was affected by timing of grant payments – most notably the early receipt of a $10.6 million Grants Commission payment for 2025–26 – the adjusted result still demonstrates fiscal health and sustainability.
No asset revaluation adjustments were recorded this financial year, a shift from previous years where revaluations boosted reported surpluses.
