Finance manager Ray Cootes presented his budget review for the period ending June 30, 2009, at Tuesday’s council meeting.

He reported improved budget results across all funds with final working capital levels and internal reserve levels exceeding target levels.

“The improved performance is a result of a combination of additional revenues (in particular interest on investments) and reduced operating costs,” he said.

The final result was a surplus of $1.1million in the General Fund, $770,000 in the Water Fund and $900,000 in the Sewer Fund.

Mayor Tony Allen said this was a wonderful result, particularly given the global financial crisis over the past year.

“Council has been comfortable in the knowledge that our finances were in the capable hands of Ray Cootes during this difficult time,” he said.

“The finance department deserves our heartiest congratulations on a job well done.”

“It is the biggest surplus I can remember in my time on council and it comes at a time when other councils across Australia are suffering great financial difficulties and taking legal action against banks and investment companies.”

Councillors adopted Mr Cootes’ report and will consider what to do with the surplus at a workshop in coming weeks.

Mr Cootes told the News Weekly that the possibility of reduced interest rates was taken into account at the time the 2008/09 draft budget was being prepared. “This plus a conservative approach being taken in estimating the value of surplus funds that would be available for investment has resulted in better than estimated returns.

“The actual interest rates paid varies from day to day but all rates are covered in a monthly investments report presented to Council.

“The amounts received over and above original budget projections were $300,000 for the General Fund, $160,000 for the Water Fund and $200,000 for the Sewer Fund.