Council's application for a Special rate Variation (SRV) is currently before the Independent Price and Regulatory Tribunal (IPART), with a decision expected late in May.
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At the same time the budget and plans for the coming financial year are on exhibition.
So what happens to those plans if IPART says 'no' to the rate rise?
One part of the answer is the Financial Sustainability Program, included in the Long Term Financial Plan on exhibition. It details how council will find savings to address the financial challenges - irrespective of the IPART decision.
This detailed plan focuses on areas that will have the most beneficial financial impacts, including a plan to deliver identified cost savings of $5 million over the next ten years.
The plan requires that council seeks more savings in every departmental operational and staffing budget, asset management and service delivery initiatives, as well as streamlining, and improving processes to ensure that best value, effectiveness, and efficiency for the community are being achieved.
The plans, currently on exhibition, also contain modelling for council's finances should the SRV application be unsuccessful. The projections are that there will be an $80 million General Fund deficit over the next ten years, which cannot be solved solely through the Financial Sustainability plan alone.
An additional important body of work would then be required over the next financial year.
This would include a review and likely reduction of service levels and asset maintenance schedules to ensure the organisation remains financially sustainable.
This could see numerous services reduced or ceased completely, staff reductions and assets being kept beyond their estimated useful life, involving increased associated risks.
On the other hand, if the SRV application is approved, residents' general rates will increase in the first year by 7.9%. Council will still use the actions in the Financial Sustainability Program to find savings and efficiencies that will hopefully make it unnecessary to put rates up by the 15% proposed in years two and three.
In either scenario, the planning and reporting documents which are currently on exhibition for community feedback, are integral to planning for the financial sustainability of our Shire and you should have your say.
To read and provide feedback on these documents go to our Your Say Macleay page: ksc.pub/Budget2024
