alarum, alarum …
Really?
How about “Warning of tough times ahead for residents & ratepayers” who will inevitably be expected to pick-up the tab for council’s financial mismanagement.
In a mind-numbing report of some 2,200 words, plus attachments, council’s Director Business & Governance cited a long list of alleged contributing factors behind council’s forecast, including:
• bushfires
• floods
• Covid19
• cost increases
• investment in technology to support working from home
• the waiving of interest on overdue amounts
• reduction in revenue &
• lower than expected investment returns.
But, as is always the case with this council, no actual or even estimated amounts cited for any of these items.
Would council have residents & ratepayers believe that they don’t know what these costs are? Certainly residents & ratepayers don’t think it unreasonable, just as they don’t think that it is unreasonable for council to offer a fuller explanation as to how these factors arose, in particular as the 2021 Budget was only approved some three months before in July of this year.
In addition, in an empty attempt to demonstrate how hard they are working to maintain service levels & reduce costs, our seriously put-upon council detailed areas where it believes it can make sacrifices & achieve savings, such as travel, accommodation & off-site training, meals & function expenses.
Wow!!
How could residents & ratepayers fail to be impressed by this major effort by council management?
Of course, no mention is made of how much these savings might amount to, but obviously they are not enough to offset the alleged negative impact items. And not a word about what tangible actions council is taking to retrieve the situation, other than to say that it will be reviewing service levels, together with vague warnings about how tough times are.
And this notwithstanding acknowledged above budget increases in council’s Income from Rates, Fees & Charges of almost $1.4M.
And no mention of planned reductions in Staff Costs which still amount to more than 36% of council’s operating expenses or Other Expenses which amount to almost 10% of council’s operating expenses & which together amount to almost half of council’s total operating expenses.
And they want to wind-back service levels?
The association believes that if the September QBRS demonstrates one thing, it is that council has arrogantly ignored the early warnings about its parlous financial state, in particular the net operating deficit of $8.9M reported in 2019 & the continuing serious deterioration in its cash position, & has failed to develop a meaningful strategy to get residents & ratepayers out of the financial hole it continues to dig.
If the forecast operating deficit for 2021 is realised, this council will have recklessly racked-up a total of more than $20M in total net operating deficits during its term in office, not including the 2020 result still to be published.
Such outcomes are testament to the incompetence of the elected council & its senior management, in particular when it is recognised that council has received almost $22M in un-budgeted & untied operating grants over its period in office, excluding 2019 where the results are still to be published.
The association believes that the only meaningful service that the current council can perform for the residents & ratepayers of the Bega Valley is to resign, but only after insisting that council’s general manager should stand down.
John Richardson
Secretary/Treasurer
Bega Valley Shire Residents & Ratepayers Association
Tel: 0264945669
Email: secretary@begavalleyshireratepayers.asn.au
Website: http://www.begavalleyshireratepayers.asn.au