ALPINE Shire Council ended the 2023/24 financial year with an operating surplus of $4.22m.

That is more than the 2023/24 Annual Budget projected surplus of $2.67m, and has been attributed to an increase in other revenue associated with interest on investments and rental returns on investment properties.

This was offset to a degree by a lower grant income, higher expenses for employee costs of $1.75m and depreciation of $0.24m.

According to financial statements presented to and signed off by councillors earlier this month, the total comprehensive result for the 2023/24 financial year is $55.09m and includes an asset revaluation increment of $50.84m.

During the 2023/24 financial year, council formally had land, land under roads and buildings revalued.

Across these assets classes and the asset class of bridges there was a $91.57m increase in asset value.

Of this increase $50.84m was identified as a true revaluation of the assets in 2023/24, while the balance of $40.73m was identified as being council assets not previously valued, and therefore accounted for as a prior year error.

Council received $38.61m in income which was $0.12m favourable to the budget projection of $38.49m.

Key variances to the budget included:

- Grants: Total operating grant income of $4.71m which was $0.90m unfavourable to the budget of $5.61m, due to the receipt of the majority of 2023/24 Financial Assistance Grant in 2022/23 and the 2024/25 Financial Assistance Grant being received in 2024/25.

- Grants (capital): Total capital grant income of $4.24m which was $1.44m less than the budget of $5.67m, due to receipt of funds from grants classified as unearned revenue as council has yet to complete and acquit the funds. These funds are recognised as a liability.

- Contribution (non-monetary): Council budgeted $1.30m, but received $3.12m, which includes land from subdivisions and recognition of the inclusion of the Porepunkah Holiday Park in council's accounts.

- Fair Value Increment on Investment Property: Decrease in accounts due to valuation of Tawonga Holiday Park being less than the amount spent on refurbishing the park, creating a write down of $1.72m. This was partly offset by an upwards increase in the valuation for Myrtleford and Bright Holiday parks of $0.95m.

- Expenses: Overall expenses were $34.36m which was $1.41m lower than budget of $35.77m. Significant expense variances included employee costs, which were higher at $12.17m compared to a budget of $12.01m, due to adoption of a new enterprise agreement and associated wages increases, which were offset by position vacancies; and materials and services costs being $15.63m against a budget of $15.58m. Additionally the landfill rehabilitation expense increased slightly due to works undertaken.

- Depreciation: This was $5.33m which was $1.92m favourable to the budget of $7.25m, reflecting increased valuations on land and decreased valuations on roads.