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April 23rd, 2013 
Peter Nolan
Posted
The Wellington Council says it is focused on improving its financial sustainability, after being rated as being in a ‘weak’ position.
The State Treasury Corporation’s released a report looking at New South Wales councils’ money and asset management and it is expected to guide the proposed changes report the Independent Review Panel into local government is due to hand down today.
The panel was appointed by Local Government Minister Don Page last March and has spent the last year investigating how councils operate in New South Wales and how their sustainability can be improved.
Wellington Mayor Rod Buhr says council will consider its budget for the next financial year this week, which will highlight the need for major expenditure on upgrading assets.
He says Wellington is among more than 30 councils considered to be weak.
“We can’t get ourselves too wrapped around the axle about it.
“The council realises it’s got some big decisions to make and the important thing is we make those decisions so we can improve our ranking and certainly that’s something I’ll be striving to do, along with the General Manager, to improve our long term outlook.”
Councillor Buhr hopes the review will recognise State Government cost shifting has added financial strain to councils.
He does not expect specific councils to be named in the ‘Future Directions’ report.
“It will give enough of an indication that you’ll know you’re possibly one of those councils that need to start changing your business.
“I suspect two years to get that done, or at least to the next state election.
“It may involve you having to start talking with the larger neighbours about maybe some service sharing, at least having a plan and begin to work towards it.”
Councillor Rod Buhr says while a surplus is expected in the budget, deficits are predicted for at least three years from 2014/15.
He says rate increases are not being considered at this stage and current services are expected to be maintained for now.
“Where we are going to have difficulty is where we have to start allocating more money to improve those assets.
“That’ll be challenge going forward and certainly by early next year will be when a) we decide how much money we put towards improving our assets and b) what affect that’ll then have on the bottom line and what may have to change to facilitate those changes being made.”
Topics:
local-government,
government-and-politics,
business-economics-and-finance,
wellington-2820,
orange-2800
Source Article from http://www.abc.net.au/news/2013-04-23/wello-budget/4645216
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