More effort will be put into reducing a projected operation deficit in Edward River Council’s 2024/2025 operation plan and budget before it is tabled for adoption.
In the budget revealed this month, council has outlined an operational deficit of $1.5 million after excluding government grants from its overall financial result.
The projection indicates that council’s asset renewal program is dependent on capital grants being received by the council.
In speaking to the draft document, Councillor Harold Clapham - who has a background in finance - said it is not a “sustainable position” for council.
“The deficit as it stands has to be reduced,” Mr Clapham said.
“I wish to have it publicly stated that I am not accepting the level of loss that the current operational plan has presented to the council and, subsequently, to the community.
“I won’t be endorsing the final operational plan if the deficit remains.”
“This loss is not a sustainable position for the Edward River Council going forward.”
Mr Clapham moved a motion to the April meeting that while the draft plan and budget be adopted to go to public consultation, that “council advises the public that modifications are being considered that will aim to reduce the operational deficit. These changes will be designed to enhance fiscal efficiency without compromising the quality of services provided to the community”.
The motion further states that any proposed changes be communicated through the statutory consultation period, which includes the council roadshow starting next week.
In seconding Cr Clapham, Councillor Pat Fogarty said there has been a “massive turnaround” in financial results from the previous council to this year of this council’s term.
She said the previous council went into the last council election with a surplus of $1.9 million, but this council could potentially deliver a $1.5 million deficit to the incoming council this September.
“It is a huge turnaround, and in my view an unacceptable turnaround, that will be our legacy that they will have to try and bring back under some control.
“We had words from the previous council as they exited that we would need to find 10 per cent per annum in efficiencies in order to be sustainable.
“That has not occurred, in fact the reverse has occurred.
“We now find ourselves in a position with a massive deficit and an enduring underlying deficit because of the management that has occurred.”
Mayor Peta Betts outlines that some work in reducing expenditure had already begun.
She said it’s already been noted that council must reduce its expenditure by $5 million a year over the next three years “with this financial year achieving a $3 million reduction to what has been presented”.
Council says its budget has been prepared on a ‘business as usual basis’ and has been set specifically to be able to deliver the 2024/25 operational plan.
The consolidated budget includes revenue of $38.42 million and expenses of $34.84 million, resulting in an operating surplus of $3.58 million.
But excluding capital grants, the outcome is a $1.5 million deficit.
“Revenue of $38.42 million includes capital income of $5.08 million,” council’s draft budget docuements state.
“These funds are used to support the delivery of the capital works program.
“When capital income is excluded from the calculation, the overall deficit is $1.5 million.
“This ultimately means that council is partly reliant on capital grants to deliver its asset renewal program.
“Council will be investing a total of $14.44 million in capital works.”
Key projects highlighted in council’s operation plan for the next financial year include:
• Completion of remaining flood repair works;
• Enhancements to ensure a safe and reliable water supply;
• Implementation of a three bin waste collection service, integrating recycling and FOGO (food organics, garden organics) management under a regional contract;
• Facilitation of the September local government elections, including support for potential candidates and an induction program for the incoming council members.
The documents also sets out fees and charges for ratepayers for the next financial year, with residential ratepayers to pay an additional $219 in fees and charges on top of their rates charges.
The increases bring the annual charges to $2018 per residential rated property.
The bulk of the increase is a result of the three bin system being implemented from July 1 this year.
Changing to this system - which provides a smaller general waste bin to each eligible property in addition to new food organics and green waste (FOGO) and recycling bins - will increase waste charges for all ratepayers by $150 per year.
The one bin system this year levied a charge of $408 for residential and non-residential properties.
It will increase to $558 if council’s draft budget is adopted without changes.
The residential filtered water access charge will increase by $20, to $228, and the residential sewerage access charge will increase from $983 to $1023 per year.
Council’s overall rates income will be increased by the maximum allowable set by the Independent Pricing and Regulatory Tribunal, which is 4.5 per cent.
The fees and charges document also sets out the proposed weekly maintenance charge to be levies on any residents on the Edward River Village.
While none of the homes in the seniors living complex have been sold yet, and councillors still raise concerns and demand to see full costing for the project, council has set the weekly property management fee at $130.
Community members are encouraged to review the draft operational plan and budget during the public exhibition period, with copies available at www.edwardriver.nsw.gov.au, and hard copies at the council office and Edward River Library.
Drop in community consultation sessions will be hosted across the council footprint from next week, as follows:
• Monday, May 6 - 5.30pm to 6.30pm, Deniliquin Town Hall.
• Tuesday, May 7 - 5pm to 6pm Wanganella Hall.
• Wednesday, May 8 - 5pm to 6pm, Pretty Pine Hall.
• Thursday, May 9 - 5pm to 6pm Mayrung Hall.
• Monday, May 13 - 5pm to 6pm - Booroorban Hall.
• Tuesday, May 14 - 5pm to 6pm, Conargo Hall.
• Wednesday, May 15 - 5pm to 6pm, Blighty Hall.
• Thursday, May 16 - 5.30pm to 6.30pm, Deniliquin Town Hall
Submissions providing feedback on the draft Operational Plan and Budget may be emailed to haveyoursay@edwardriver.nsw.gov.au, dropped into the council’s Customer Service Centre or mailed to the Interim Chief Executive Officer at PO Box 270, Deniliquin.