Three south-west councils are recording better-than-expected yearly results thanks to shrewd financial management during the pandemic.
Moyne Shire councillors passed the annual financial report on Tuesday with a surplus of $6.19 million.
However, community and corporate services director Kevin Leddin said this figure accounted for a late funding injection of federal grants worth $4.5 million for the following financial year but received in June.
"It's a timing issue," Mr Leddin said.
"That contributes to that higher-than-normal accounting result."
The council in coming weeks is due to reveal its underlying surplus result, which will strip away funding such as grants to give a more accurate result.
"It's certainly not $6 million cash, we are closer to a breakeven result when we look at actual results compared to the budget and the rates that council set," Mr Leddin said.
Moyne's caravan parks exceeded budget expectations by $1 million and its quarry exceeded expectations by $300,000, the financial report shows.
The council has almost $600 million worth of community assets under its control with a depreciation of almost $14 million a year.
Mr Leddin said the council had achieved a 100 per cent renewal rate of assets in recent years to maintain the infrastructure.
Employee costs at the council rose from $18.74 million in 2019-20, to $20.84 million in 2020-21, the report shows.
The council received $23.68 million in rates and charges.
Warrnambool City Council this month adopted its yearly finance report which included an accounting surplus of $12.53 million with an actual underlying surplus of $2.4 million.
A number of city facilities were forced to close due to the pandemic which led to a drop in both user fees but also associated costs.
The closure of Aquazone, Flagstaff Hill, holiday parks, stadium, art gallery and Lighthouse Theatre led to a decrease in user fee revenue by $4.98 million, but also a decreased in associated expenses by $2.79 million up until June 30, the annual report says.
Council also passed a motion at their last meeting to rollover $12.9 million into the 2021-22 financial year, most of which relate to state and federal grants for ongoing operating and capital projects.
Some of these relate to ongoing projects such as the Lake Pertobe upgrade, Reid Oval redevelopment and joint library hub at the TAFE site.
"The disruptions caused by COVID-19 has also seen a significant number of services not being able to be completed during the financial year," the council said.
"This has particularly impacted services that are delivered to the vulnerable members of the public."
That funding and service targets are being rolled over into the 2021-22 financial year.
Corangamite Shire is yet to adopt the council's yearly finance report but its most recent monthly report showed the council was on track for a $10.9 million surplus after predicting a $2.7 million deficit.
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