In a remarkable display of financial wisdom, the Mayor, Cr Sharon Tapscott, dismissed ratepayers' concerns over the $15M net operating deficit recorded in council’s General Fund for 2018-2019 by claiming that it was “a moment in time”.
The association begs to differ.
When asked where the money had gone, Cr Tapscott helpfully referred ratepayers to Note 2a) to the audited Financial Statements, stating that all council’s expenditure by type could be seen there.
Well, that might be true, but it does nothing to help explain the $14.1M net operating deficit in the
General Fund, in particular given the original approved budget deficit of $3.8M.
More to the point, council has provided no explanation as to what specifically drove the over-budget expenditure on Employee Benefits & On-Costs of $1.1M & over budget expenditure on Materials & Contracts of $13.3M.
Cr Tapscott went on to claim that the over expenditure was caused by the March, 2018 Tathra bushfire, Flood Damage repairs, the Breakwater in Eden, reduced Operating Grants & Completion of Works undertaken in 2017-2018.
Council always seems to have a ready excuse for its over expenditure … bushfires, floods, COVID 19. But there is rarely a specific cost mentioned: only a vague generalisation.
The association challenges council to confirm the quantum of unbudgeted expenditure it incurred as a result of the Tathra bushfire in 2018-2019, in particular as it understands that the costs of that disaster were largely underwritten by the state & federal governments.
Cr Tapscott claims that council received $3M less than it had Budgeted for in Operating Grants when, in fact, it received $6.9M more than it had Budgeted & still managed to chalk-up a $14.1M net operating deficit in the General Fund.
As for the Breakwater in Eden & Flood Damage Repairs, they remain a mystery.
While Cr Tapscott does deserve some credit for attempting to explain the reasons for council’s poor performance in 2018-2019, that is more than can be said for her predecessor who has had nothing to say other than to belt the state & federal governments for not taking care of the shire.
It is important to note that the association has never suggested that council is guilty of some financial malfeasance but rather that it is simply not open & transparent enough about its activities on the one hand & is unwilling to control its expenditure on the other.
Every resident in the shire has to go about their daily business taking account of their means. The association believes that it is not too much to expect council to do the same.
Every year council goes through a laborious exercise in developing & approving its Operational Plan & Budget for the coming financial year. Every year council fails to contain its expenditure within the approved Budget.
The association fully accepts that there might be good reasons for council not being able to manage within its Budget but it has a duty to detail those reasons to ratepayers & not just fob them off.
The issue is not the association’s curiosity but rather the fact that council must be held accountable to all residents & ratepayers for its performance, particularly where that performance is left wanting.
It is the responsibility of the elected council to ensure satisfactory explanations are forthcoming from council management in those circumstances & that steps are taken to prevent a reoccurrence.
Anything less is a waste of everyone’s time & ratepayers’ dwindling funds.
John Richardson
Secretary/Treasurer
Bega Valley Shire Residents & Ratepayers Association
Tel: 0264945669
Email: secretary@begavalleyshireratepayers.asn.au
Website: http://www.begavalleyshireratepayers.asn.au