Breakeven means we won’t borrow money to fund our everyday operations – we will only spend what we earn. This is like a family making sure it uses wages to pay for its weekly groceries, as opposed to buying food on a credit card, which means going in to debt.
This is important for Council as we don’t want debt from funding everyday operations. This is what we call bad debt. Making sure we don’t incur bad debt is a key part of our long term strategy to become financially sustainable.
Draft ABP 2020/21: Supporting growth, investing in renewal, and securing our financial future.