Hepburn adopts 2022 Financial Statements

Published on 21 September 2022

The Hepburn Shire Council Financial and Performance Statements for 2022 were adopted at last night’s Council meeting.  

Hepburn Shire CEO, Bradley Thomas, said the financial statements had been impacted by unique challenges associated with the pandemic and severe weather events.  
 
“Hepburn Shire, like most local governments, is experiencing a challenging fiscal environment with the continuing impacts of the COVID-19 pandemic, significant storm events during the year, the current rising costs in the economy and operating in an income constrained environment,” Mr Thomas said. 
 
“A major impact on Councils’ financial position during the year was the cost of recovery works to support our community following two major storms at Trentham and Creswick.”  

A significant percentage of the recovery costs will be reimbursed through government funding; however, Council is forecasting a $1.7 million shortfall in the funding received when the recovery works are completed.  
 
The operating result for 2021/2022 was a deficit of $5.6 million.  After removing one-off items, the impact of the storms and non-cash costs of asset write-downs the deficit reduces to $1.52 million.   

Council delivered the $10.2 million, the most in recent history, of capital works across roads, bridges footpaths and buildings, throughout the financial year ($9.4 million in 2020/2021). An estimate of $8.5 million of project expenditure will be carried forward into 2022/2023 ($12.1 million in 2020/2021) with the intention of completing these projects in 2022/2023. 
 
Council reported an unrestricted cash position of $961,000, an improvement from $842,000 12 months ago, and a low or medium financial risk in five out of the six financial risk ratios as determined by the Victorian Auditor General. 

“It is not unusual for councils to report a deficit, however, sometimes it does not reflect the “true” financial performance and cash position of Council and actions are in place to actively monitor and improve this result,” Mr Thomas said.  
 
Mayor, Cr Tim Drylie said Council is in a tight, but stable financial position, and will closely monitor and review its finances and performance over the coming years to ensure it remains in a financially sustainable position. 

“Council has adopted that as part of a mid-year review, officers will undertake an organisational service scan by December 2022 to identify opportunities to review operations and projects to ensure Council’s ongoing financial sustainability.” 

 
Visit www.hepburn.vic.gov.au to view a copy of the Financial Statements.