The Carrathool Shire Council held its ordinary meeting on 19 November 2024. The meeting covered a range of topics, including a presentation by the external auditor and a review of the council's financial performance.

The Office of Local Government (OLG) released data comparing the financial performance of councils across New South Wales. The data for Carrathool Shire is available on Council's website.

The OLG uses a series of benchmarks to assess a council's sustainability.

The "Operating Performance Ratio" measures a council's ability to keep operating expenses within operating income.

Carrathool Shire had a ratio of 26.4%, significantly higher than the group average of 14.7%. However, the report notes that the benchmark of 60% or greater is difficult to achieve for rural councils.

The "Unrestricted Current Ratio" measures a council's ability to meet short-term liabilities with short-term assets. Carrathool Shire's ratio of 10.6 was considered in the report as being very healthy.

The "Debt Service Cover Ratio", which assesses the council's ability to service its debt, was also strong at 31.2..

Additionally, with 25.9 months of cash on hand to cover immediate expenses, the council far exceeded the benchmark of 3 months.

Council says this indicates a healthy financial position.

The first quarter budget review for 2024/2025 showed an adjusted surplus of $383,682 for the general fund, a significant improvement from the original budgeted surplus of $142,284.

The water fund showed an adjusted surplus of $30,451, while the sewer fund remained at the original surplus budget of $257,510.67.

The report highlighted significant capital works projects, including the construction of an RFS station and school crossings.

Investment performance was also reviewed during the meeting. As of 31 October 2024, the council held $44,639,053.90 in investments.

However, concerns were raised in the financial report about the lack of diversification in the portfolio, which could pose a higher risk.

Overall, Carrathool Shire Council reports they are in a strong financial position. The council has healthy reserves, low debt, and a solid track record of managing its finances.

The OLG benchmarks provide valuable insights into the council's performance and allow for comparisons with other councils in New South Wales. Residents can access these reports to stay informed about the council's financial health and how it compares to its peers.