Eurobodalla Shire Councillors and former general manager Warwick Winn. Photo: Eurobodalla Shire Council.
Some key financial metrics for Eurobodalla Shire Council worsened last financial year.
Before grants and contributions provided for capital purposes, council’s consolidated operating deficit for the year to 30 June 2025 (FY25), was $14.27 million. That was larger than FY24’s deficit of $8.83 million and $11.45 million larger than the budgeted deficit of $2.82 million.
The papers for council’s general meeting on 23 September detailed $10.9 million of the $11.45 million shortfall against budget.
The largest item was $4.12 million due to the Commonwealth Government Financial Assistance Grant prepayment being cut from 85 per cent in FY24 to 50 per cent in FY25.
During the council meeting Councillor Sharon Winslade asked about the grant. Council’s director finance and corporate services Stephanie Speedy said the timing of the grant was the issue.
“The amount hasn’t changed. It is the timing,” Ms Speedy said. “We were to receive $10 million but only received $6.5 million. It will be received next financial year.”
The other two big items behind the shortfall against budget were $3.5 million of write-offs on infrastructure assets that were replaced or renewed, and $1.71 million associated with the deteriorating operating performance of council’s Community Care service and redundancies after council transitioned from the service.
Also of note was a $28 million decline in grants and contributions for capital purposes from $69.3 million to $41.3 million. The council papers said that was primarily due to a $10.73 million drop in cash and non-cash developer contributions “reflecting current market conditions”.
On the positive side, unrestricted cash rose $2.33 million to $10.5 million. Council’s financial position also improved with net assets of $2.35 billion, up from $2.27 billion in F24.
The notes to the accounts included the financial performance of council’s activities. Among the most expensive are information and support services with a net operating deficit of $9.4 million, $7.17 million for recreation, $6.15 million for community facilities and spaces, $5.78 million for public order and safety which includes pets, parking, beach patrol and emergency services, and $5.1 million for corporate and community leadership.
The notes also showed that key management personnel’s short-term benefits, post-employment benefits and other long-term benefits jumped to $2.78 million from $1.52 million in FY24.
As well as the general purpose financial statements referred to above, council’s papers included draft special purpose financial statements. These assess the financial performance of council’s water supply and sewerage services, as well as its two declared business activities: Batemans Bay Beach Resort and Bay Pavilions.
The Bay Pavilions posted a $5.97 million deficit after tax in the last financial year. Photo: Eurobodalla Shire Council.
The water supply business posted a surplus after tax of $9.11 million. That was down from $30 million in FY24 and due to a $20.9 million drop in grants and contributions for capital purposes.
The papers for the council meeting said most of the variance was due to the timing and staging of the Southern Water Storage Facility project. “These fluctuations are typical of multi-year capital programs and reflect the delivery cycle of major infrastructure projects.”
The sewerage business posted a surplus after tax of $4.41 million versus $4.92 million in FY24.
Batemans Bay Beach Resort posted a surplus after tax of $704,000 versus $476,000 in FY24. The higher surplus was helped by a $195,000 fall in expenses on services and materials. The resort posted a 9.1 per cent return on capital versus returns of less than 1 per cent on the water and sewerage businesses.
Bay Pavilions’ deficit after tax grew to $5.97 million from $5.3 million in FY24. An $837,000 increase in spending on materials and services was a contributing cause to the deterioration. The negative return on capital worsened from 8.3 per cent in FY24 to 9.5 per cent in FY25.
The net assets of the water supply and sewerage businesses and Batemans Bay Beach Resort increased.
In contrast, the net assets of Bay Pavilions fell from $59 million in FY24 to $58.86 million.
Councillors voted that the draft annual financial statements be referred to audit. The audited financial statements will be presented at the 26 November council meeting.
