Operational Plan & Budget Adopted

Operational Plan & Budget Adopted

Published on 20 June 2023

Edward River Council has adopted a “business as usual” approach to next year’s Operational Plan and budget, with Councillors listening to community feedback and choosing the “base case scenario” in its Long Term Financial Plan in order to defer the application for a special rate variation (SRV) for at least another year.

In response to its endorsed Financial Sustainability Report, Council considered three scenarios in adopting the Long Term Financial Plan, which allows local governments to take a proactive approach to financial management, tailoring fees and project delivery to suit economic conditions and community sentiment.

Base case – a “business as usual” approach, with no rate increases over the ‘rate peg’ approved by the Independent Pricing and Regulatory Tribunal of NSW (IPART), and no plans to change what Council delivers. Enhanced Asset Investment Scenario - included more spending on the renewal and replacement of assets to ensure they remain at an acceptable standard in coming years. Extra spending would have been funded by the introduction of a special variation of 7% for six consecutive years. Enhanced Asset Investment and Growth Scenario - as for scenario two, plus investing further in assets to encourage growth in the region.

Chief Executive Officer Phil Stone said the three scenarios reflected many months of investigation, planning and consultation, with Council undertaking significant reviews of its asset management, the capacity and capability of its workforce and financial sustainability in order to better understand the state of Council resourcing, asset condition and required maintenance over the coming years.

“The budget was originally proposed with a $1.2M deficit, which has now been halved and will be amply covered by Council’s cash reserves. The business as usual approach will allow Council to continue to preserve cash for future spending when those decisions are made.

“While the base case keeps rates as low as possible, it is an unsustainable position in the long run and we will need to consider how our community assets like roads, water infrastructure, heritage buildings and recreational facilities are maintained for use in the coming years.”

Mr Stone said the rate increase in the budget of 4.4% was the maximum allowed by IPART and does not keep up with inflation or the increased costs being pushed onto council by the state government.

“Community feedback told us that consideration of a SRV is currently a step too far, so we are listening and responding to what our community is experiencing right now.” 

Mr Stone said the budget would allow Council to deliver a number of projects already underway, including the finalisation of the Edward River Growth Strategy, delivery of a grant funded program of flood recovery works, the Airport runway upgrade, co-funded roadworks on Charlotte Street and Hardinge Street, a waste education program and Stage 1 of the Edward River Village. The budget also provides for some necessary consolidation and improvement work to be undertaken, with a renewed focus on workforce capability and safety, and service delivery.

“We will also be going ahead with the establishment of an Arts and Culture Advisory Committee, which is a real positive for our community.

“But, unfortunately, proposed initiatives like establishing a regional theatre at the Town Hall, some tourism development work and the swimming pool masterplan won’t be able to be funded in this budget, and need to be deferred, unless we can find additional funding through State or Federal Government sources.

“While it has been a hard decision for Council to make, and not a unanimous one, Councillors listened to our community and engaged in robust and respectful debate as a group. We are grateful to community members who took the time to review our documentation and comment on plans and scenarios. I can assure you that we will be vigorously pursuing every opportunity to identify savings and efficiencies within the organisation and explore every avenue for grant funding to help bring deferred projects forward,” said Mr Stone.

Edward River Council Mayor Councillor Peta Betts expressed her gratitude to the Councillors.

“I’d like to thank Councillors for their commitment to, and engagement with, the process. We commenced monthly and sometimes weekly discussions since February of this year in order to appropriately consider the complexities and detail for the development of the annual Operational Plan and budget, Long Term Financial Plan and Financial Sustainability review,” concluded Cr Betts.

The Edward River Council 2023-24 Operational Plan and Budget adopted at the Council meeting on 20 June includes:

an extensive program of flood recovery works completion of Stage 1 of the Edward River Village $4.4 million investment for roads including a $3 million contribution to upgrading Hardinge Street between Ochtertyre St and Harfleur St (which also includes upgrades to stormwater and water infrastructure) completion of the Airport runway upgrade implementation of a community waste education program and preparation for the consideration of a three-bin kerbside collection service increased workforce capability in risk and safety, human resources, economic development, procurement, facilities management, waste management and strategic asset management improved workforce delivery in service areas a review program to identify savings, efficiencies and improvements in service delivery increased focus on identifying and securing of additional revenue through grants delivery of the Edward River Growth Strategy improvements to workplace health and safety and professional development for staff renewed focus on strategic asset management  support for arts and culture through the establishment of an advisory committee, and operation of the Town Hall