Rural City of Wangaratta Council have approved the financial statement for the 2024/25 year with results showing a total income of $94.26m and expenses of $89.36m, resulting in a surplus of $4.9m, and cash on hand of $27.54m.

Council held a special meeting last week to approve the financial and performance statement that were previously endorsed by the audit and risk committee.

Key changes from the 2024/25 budget to the outcome included:

Total income decreased by $5.81 million and some of the key movements between income categories were:

Rates and charges increased by $1.55 million, an increase due to a 2.75 per cent increase in rates which is within the rate cap and a similar increase in waste charges.

All other rates and charges (cultural/recreational land, supplementary rates, revenue in lieu, interest) increased by $221k.

Operating grants increased by $11.34m (from $12.36m to $23.70m) due to early receipt of the Commonwealth Financial Assistance Grants for the 2025/26 financial year ($13.8m), caused by a timing difference in recognition.

Aged and community care funding was $6.32 million in 2024/25, compared to $7.08 million in 2023/24, reflecting a decrease in this category.

The overall increase in operating grants was partially offset by lower non-recurrent grants in other areas.

Capital grants decreased by $3.87m (from $11.89m to $8.01m), due to lower Roads to Recovery and state capital grants, with some projects delayed or carried forward.

Other income decreased by $13.52m (from $18.26m to $4.74m).

This decrease is primarily attributable to lower movements in landfill provisions, which contributed $2.18 million in 2024/25 compared to $10.43 million in 2023/24. Additionally, there were no found assets recognised in 2024/25.

Total expenses decreased by $3.94 million.

Some of the key movements between expense categories were:

Employee costs increased by $0.95m (from $32.64m to $33.59m) due to wage growth from EBA increase, superannuation increases, and higher FTE in some areas, partially offset by vacancies savings.

Materials and services increased by $0.77m (from $28.64m to $29.40m), with the largest increases in utilities ($455k), consultants/contractors ($1.05m), and insurance costs.

Depreciation increased by $4.36m.

This was a significant increase from $16.84 million in 2023/24 to $21.20m in 2024/25.

This increase is partially attributable to asset revaluations for both 2022/23 and 2023/24 being processed in 2023/24, which led to a catch-up in depreciation expenses in 2024/25.

The balance of the increase is due to a correction in the asset management system which previously applied fixed-rate depreciation codes, which lead to immaterial understatements in depreciation in prior years.

The capitalisation of assets further expanded the depreciable asset base, contributing to the overall increase.

Other expenses decreased by $10.07m (from $13.99m to $3.93m) as 2023/24 included a large landfill provision adjustment ($10.18m), and higher write-offs of non-capital items from work-in-progress (WIP).

Other comprehensive income increased by $24.02m (from $17.02m to $41.04m).

This movement was a result of the changes in the asset revaluation reserve caused by revaluations.

The classes that were revalued this year were land and land under roads.

Other assets classes that were to be revalued in 2024/25 have been postponed to 2025/26.

During the 2024/25 audit it was identified that certain contributed infrastructure assets from developers had not been recognised in the 2023/24 financial year due to delays in processing Work In Progress capitalisations.

Therefore, council has restated the 2023/24 comparative figures to include $3.373 million in previously omitted non-monetary contributions.

This adjustment increased the reported surplus and asset balances for 2023/24.

The budget for the 2025/26 financial year has a projected income of $100,072 and expenses of $93,305, resulting in forecast surplus of $6767.