A surprise surplus has been highlighted in Edward River Council’s quarterly budget review despite a significant increase in consultant costs.
A reduction in capital works spending for plant replacement, a reduced airport runway budget and an adjustment for GST in the Edward River Village project have contributed to a surprise surplus.
Council’s acting chief finance officer Alistair Cochrane told councillors last week the review was good news, with variations resulting in a surplus of $181,270 for the March quarter.
Whilst $922,000 in savings were made by reducing spending on plant replacement, and a $5.5 million budget reduction for the airport runway, the statement also highlighted costs for consultants had been revised from $359,243 to more than $1 million.
Responding to questions from Cr Pat Fogarty, director of corporate services Shelley Jones said most of the expenditure on consultants was due to “backfilling” vacant roles at council.
This includes consultants acting in finance roles at a cost of $416,000 and for a communications consultant at a cost of $81,000.
The Pastoral Times understands these figures exclude project management and other contractor costs.
Cr Harold Clapham questioned the expenditure and what consultants it was paying for.
“The $81,000 – is that for the people who have been in town doing the community engagement?” Cr Clapham asked.
“No. That is for backfilling the vacant communications officer position via contractor,” Ms Jones responded.
“So, the people we’ve engaged to do the community engagement – is that a separate thing?” Cr Clapham asked.
“Correct,” Ms Jones replied, saying those consultants were already budgeted for.
Despite repeated claims by council’s chief executive officer Phil Stone that there are several vacancies at Edward River Council, none are currently listed on council’s website.
Council’s communications consultant told the Pastoral Times none of the vacancies are currently being advertised, due to “either having already closed and are now filled or (the positions) are under review for re-advertising or are on hold until resources are approved in the 23-24 Operational Plan and budget”.
Mr Stone last month said council was recruiting for several positions, including manager finance/CFO, risk advisor, cadet engineer, team leader mechanic, tourism and business coordinator, plant operator water and sewerage L1 and rural landfill operator.
It is not clear which of these positions have been filled, however he had previously told the Pastoral Times that recruitment was ongoing.
“Of these vacancies, three are at the interview stage - including finance manager and project manager - with appointments to be made within weeks,” he said in April last year.
The finance manager position, however, is still being filled by a consultant. The communications consultant role, advertised as a 22-week contract position, ends on June 30.
The quarterly review also lists $23,000 being spent on civic redevelopment consultants, however the communications consultant said this was an error.
“This is not additional funds in the quarterly budget review statements. This part of the report highlights the funds spent on consultants during the year.
“The $23,000 was incorrectly categorised as consultants, but are in fact, contract costs for the Town Hall development and rent for temporary accommodation.”
The quarterly update also noted a $60,000 increase in councillor training expenses and another $10,000 for councillor travel expenses to cover attendance at future conferences.
Cr Fogarty also questioned an additional $16,000 allocated for another consultant for “expression of interest in major grant investment”.
Mr Stone said he could not say too much about that except it was for a “$3-5 million development near the corner of Ochtertyre and Hardinge Streets” which had the potential to see three to four new businesses move to Deniliquin.
“Given it wasn’t budgeted for, I’ve put that forward in the quarterly budget review,” he said.
The consultant for the project was not named but Mr Stone said they would be supporting a local developer.