Support for council rates freeze

My family has invested substantially in the Narrabri Shire Council area, so I have a keen interest in its progress.

I am a member of the Chambers of Commerce in Narrabri and Boggabri and I attend Council meetings.

A significant factor in all of our futures is the efficient and effective operation of the Narrabri Shire Council that has its 2020-21 Operational Plan (Budget), on display on its website.

Submissions have been requested from the public in writing by cob June 22, 2020.

I urge all residents to have a look at this budget and comment.

It is especially pleasing to see Cr Ron Campbell move a motion to have the budget prepared with a freeze on all rates and charges.

Under the Local Government Act 1993, as amended, the Council must carefully consider what it takes from the community in rates and charges and at the same time, ensure they are spent with effectiveness, efficiency and economy. When it doesn’t make sound responsible financial decisions to do this, it can become an unnecessary impost on the community. To assist in judging Council on this I submit my budget observations.

A trend of concern is the budget forecasts are not being achieved as reflected by the actual result. For instance, in the 2018-19 budget, the estimate was a surplus of $1,665,000 but the result was actually a deficit of $97,000 – this was a net adverse turnaround of $1,762,000. In 2019-20 there was a budget for a surplus of $799,000 but actually the result is projected to be an adjusted deficit of $1,076,000, still an adverse turnaround of $1,875,000.

In the coming year 2020-21, the prediction is a deficit of $1,844,000, after a fees and charges freeze proposed by Cr Campbell, that the general manager has claimed will add $796,768 to the operating deficit. If Council is worried about the lost revenue being retained by the ratepayers they can look at controlling the growth in employee costs to $19,140,838 in this coming period, which is a 21 per cent increase on the 18-19 actual figure.

It would seem the Council has difficulty with the accuracy of its predictions whereby two years in a row the target fell short the best part of $2 million each year, this raises a fear Council is locked into a downward spiral of nearly $4m operational deficit, if you assume yet another $2m overspend to the $1,844,000 budget deficit for 2020-21.

There is a common misconception among councillors and the community that the auditor makes sure there is no wastage or money misspent, however I draw your attention to the disclaimer that every NSW audit is signed off with by the auditor: “My opinion does not provide assurance that the council carried out its activities effectively, efficiently or economically”.

There is much more I could highlight (if space permitted) but to conclude, I strongly support Cr Campbell in the fees and rates freeze for 2020-21 and urge our councillors to make improvements in the areas the auditor says are not of his concern but definitely are for ratepayers, on how well our rates are spent effectively, efficiently and economically.

Greg Lamont, Boggabri