Councillors are set to hit the drawing board to draw up their budget plans after they were told of a projected deficit for this financial year.
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The projected deficit for 2017-2018 before capital grants is $1.445 million.
Fortunately, Federal Assistance Grants and state money for the forced merger mean Cootamundra-Gundagai Regional Council is expected to have a surplus of $2.466 million for 2017-2018.
While the capital grants mean council is in surplus, mayor McAlister said running deficits before capital grants was not sustainable over the long term and felt council shouldn’t rely on them to balance the books.
He said councillors would hold a workshop in two weeks to find out what they could do to improve council’s standing for the next financial year ending June 2019.
“We don’t want to run into deficit, we’ll have to really look at the 2018-2019 budget, to find where we can cut costs and cuts expenses to way lay that deficit,” Councillor McAlister said.
“We can’t rely on capital grants all the time.”
He said the challenge would be about ensuring residents still get the services they expect. Adding to that challenge is the moratorium on rate increases imposed by the state government, preventing council from raising rates beyond the rate peg.
Cr McAlister said the rate peg, set by the Independent Pricing and Regulatory Tribunal, often didn’t allow for increases in on going expenses.
There’s also $236,000 a year which will be lost due to a special rate variation for Gundagai properties ending in June.
“After 2020, we may have to look at raising rates beyond the rate peg,” Cr McAlister said.
He said the state government kept forcing additional costs onto council, with an extra $10,000 required to facilitate Anzac Day commemorations.
Cr McAlister said those extra traffic management requirements were due to terror attacks in Melbourne and beyond, but council was left to foot the bill by the state government.
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Declan Rurenga
Declan Rurenga was the editor of Griffith's Area News and Leeton's Irrigator until September 2023. Before landing at the Murrumbidgee Irrigation Area, he reported news in Junee, Wagga Wagga, Orange and Cootamundra.
Declan Rurenga was the editor of Griffith's Area News and Leeton's Irrigator until September 2023. Before landing at the Murrumbidgee Irrigation Area, he reported news in Junee, Wagga Wagga, Orange and Cootamundra.
