In his report to the council’s finance, audit and risk committee table at the committee’s meeting last week, council finance and corporate group manager Paul Hope said some of the changes that would be made to the council’s financial reports before its annual report was published "could be significant".
The preliminary surplus was well under the budgeted surplus of $3.432 million.
Mr Hope said the figure was a result of additional government funding related maintenance required after the July 2017 flood event, increased user charges, funds for toilet construction, development contributions revenue and dividend income being offset by "significantly increased" depreciation that arose from the revaluation of the council’s roading network and a $2 million variance grants for the now deferred cultural facilities project.
The council also had about $500,000 in flood-related insurance claims yet to be paid out because of delays in processing the claims.
Cr Craig Dawson queried if the delay had come as a result of "philosophical" differences between the council and its insurance company.
Mr Hope said that was not the case and the claims process had been "long" because claims needed to be lodged under the appropriate category so they could be paid out.
Other financial aspects that needed to be finalised included the council’s final capitalisation process related to its final depreciation charge, and the confirmation of the value of the council’s forestry assets.
Mr Hope’s report said the most "prominent feature" of the council’s financial report was the impact of the three-yearly revaluation of roading infrastructure assets, which resulted in a "notional gain" of $84.9 million, more than $70 million above budget.
The revaluation also contributed to a "significant increase" in depreciation expenses, he said.
Total revenue for the year to June 30 was $49.805 million and total expenses $48.845 million.
