mmg.com.au

Moira Shire Council has paid its unfunded superannuation liability of $1.6million.

Council noted the liability, along with reduced Victorian Grants Commission funding for the 2012-13 financial year, would challenge its financial position.

It expected its cash balance to be $10million at the end of February.

It said a good underlying financial position as at January 31 would enable capital works and flood recovery works to be undertaken soon.

‘‘Moira Shire Council paid $1.6million to Vision Super to cover the Local Authorities Superannuation Fund Defined Benefit Scheme shortfall as its statutory contribution in December,’’ chief executive Gary Arnold said.

‘‘As part of council’s long-term financial plan, an allocation of $600000 over two years was provided to fund the expenditure.

‘‘In addition to this and as part of council’s continuing cost control strategy, savings were made on both operational expenditure and building projects where capital expenditure incurred was less than that budgeted for in the council’s 2012-13 budget.’’

Council’s operating revenue to January 31 was $38.71million, up from the forecast $34.04million and included $5.03million flood disaster funding not in the forecast.

Its operating expenses were $35.71million, up from the forecast $28.45million, and includes $10.26million of flood recovery costs not in the forecast.

Its capital revenue was $2.4million and capital expenditure was 2.84million.