Initiatives to build financial sustainability at next Council meeting
Published on 08 March 2024
Council will next week consider a number of recommended actions that have been identified through the Financial Sustainability Review (FSR) to increase operating revenue and decrease expenses.
The Financial Sustainability Monthly Report includes the first raft of initiatives that have been presented to the Councillors at workshops being held during the last three weeks to address the current $25 million to $35 million annual structural deficit that was highlighted in a report to Council on 20 November 2023.
At its meeting 29 January 2024, the Council determined that it would progress with the 27 measures proposed in the FSR except for proceeding with an application to IPART for a Special Rate Variation, and set some additional strategies, including implementing measures to improve operational efficiencies.
“The Councillors have made it clear that they want us to find efficiencies in the organisation and while we are doing everything we can, there is no lever we can immediately pull that would offset the significant forecast structural deficit and maintain the works and services we need to provide across the city,” said CEO Robyn Stevens.
“Processes have already been put in place to qualify projects and recruitment needs, review asset sales, vehicle fleet and asset maintenance so we can better scrutinise and plan our operational needs and costs to secure efficiencies for the long term,” Ms Stevens said.
“Right now, we are working to set the budget for the next financial year in accordance with the direction given by the Councillors which includes capping our capital works budget, increasing fees and charges and reducing expenses to close the gap between costs and income,” she said.
The report to Council’s meeting on Monday 11 March, includes recommendations to pause 14 community facility projects, including the Sanctuary Point District Library ($30 million, including $7.54 million grant funding), Bomaderry Basketball Stadium redevelopment ($10.15 million including $550,000 grant funding) and stages 5 to 7 of the Boongaree Recreation Precinct ($20.9 million, including $15.5 million grant funding).
Other projects proposed to be placed on hold are the Bob Proudfoot Pavilion in Sanctuary Point ($3 million, including $900,000 loan and $400,000 grant funding), Bay and Basin Leisure Centre refurbishment (approx. $36.3 million) and construction of the Berry Spinners and Weavers building ($3 million).
The report also recommends that the annual $200,000 allocation for the Community Donations Program be suspended for the 2024-25 financial year. This item has been prioritised based on the community feedback to the service review survey completed in December 2023 and January 2024, which ranked ‘donations, community grants and financial support’ as 5th (out of 80 external Council services) to reduce.
Annual fees for outdoor dining on public footpaths are suggested to be reinstated. In 2009, Council started waiving fees for any new applicants and since 2013, has waived the fee for all outdoor dining commercial footpath use and absorbed the cost of public liability insurance. Currently, there are 73 outdoor dining approvals in place and it is proposed that the annual fee of $76.65 m2 be applied.
The full report is available on Council’s website.