Financial management

When I announced my intention to stand for Council the first question asked was "Where do you stand on the Cumberoona?"

It's definitely an important question but I think there are lots of others that rank up there or even higher.  I've been having a think about the City's finances and the way they are going at the moment and I have a few comments and questions that I have set out. 

Have a read and get back to me if you want to ask me anything about this or other matters that concern you.

Financial management

Albury ratepayers were hit with a 6.9% rate increase this year and we are told that we will see similar increases for the next few years.  It is necessary, so we are told to, pay for new infrastructure and to maintain old infrastructure.  There are also various projects that Council would like to do.  So how do we prioritise projects and maintain the city while minimising rate increases?

The present situation

Each year the Department of Local Government publishes comparative reports in which similar Councils are compared in a number of areas.  Albury Council is grouped with 32 other councils of similar size including Wagga Wagga, Dubbo, Orange, Tamworth and Griffith.

The latest report available for 2009/10 shows that Albury had the 3^rd highest rates in all categories (residential, rural and business), the 4^th highest in number of equivalent full-time staff (and this is still rising).  Clearly there must be opportunities for savings and we must look keenly at wherever we can cut costs.

Currently Council has $3 million worth of investments that are yielding 0% and there is a likelihood that the capital value on maturity will be less than the original investment!  On a conservative estimate these investments should be yielding almost $200,000 per annum.  That would pay for quite a few services!

Do you know that there are currently 89 active credit cards utilised within Council (that’s about 1 per 5 employees) with a total spend of $53,000 per month and an average of $800 per employee.  In the 3 years from April 2009 to June 2012 the number of cards increased from 73 to 89.  Credit charges can be authorised by employees right down to Supervisor level.  Does this seem a good way to run a business to you?  It might be but I would like to have more information.

What to do?

In setting next year’s budget, each operating area should be asked to find savings of 5% and 10% and detail how such savings would impact on operations.  Councillors have the responsibility to lead and to provide strategy to guide the Council.  Each Councillor, through the General Manager must seek more detail in all financial matters so that ratepayers are given the best value for money and wastage is reduced or eliminated

David Thurley