Focusing attention on key projects and services has been critical in the turnaround and the result is a modest net operating surplus of $754,000.

The statements also show an $18.7 million operating result but this includes $18 million for capital grants and contributions that cannot be used to meet operational expenses.

Progress has been achieved through the likes of restructuring and reducing the workforce, prioritising projects, asset sales and changing how we deliver some services. However, there is still significant work to do.

Financial sustainability requires sufficient operational revenue to cover expenses in the long run. All revenue that cannot be applied to cover day-to-day operational costs should be excluded.

After adjusting for these items the underlying operating deficit is $6.2 million, a significant improvement on the $20 million-plus deficit prior to the the council's financial recovery strategy in early 2013.

We are seeking community assistance through a special rate variation to address the balance of the deficit and achieve long-term financial sustainability.

The road to financial recovery has been a focus of councillors, management and staff after Treasury Corporation (T-Corp) reviewed the council's finances in 2012, giving a bleak outlook for the future if significant changes were not made.

While recovery has not been easy, we are making very good progress.