At next Tuesdays Council meeting, Councillor Anthony Mayne has given notice that he will move the following motion.

“THAT Council acknowledge the financial stewardship and challenging work underway to return the organisation to financial sustainability. “

Cr Mayne has provided the following backgrounder to his motion – “In 2022-23 Council was forecasting a $4 million deficit. On closer examination that amount was nearer $14 million. At that time there was no Finance Director or even a finance directorate at Council.

The Bay Pavilions was forecast to cost Council $384K per year to run, but closer examination shows that will be nearer to $5 million per year. A KPMG review of the facility confirmed these disappointing figures.

Similarly, the independent report commissioned to look at the Mogo Trails mountain bike park has shown annual costs to Council are at least double those anticipated.

As we move forward, we need a solutions-focused approach. Concentrating on the rear-view mirror will not address our current challenges. However, we do need to learn the lessons to ensure we have in place the necessary financial governance and transparency to manage our trajectory. I acknowledge the work of staff and of my fellow Councillors in addressing the financial legacies that are now being addressed.

We already know the southern dam will run over budget in the millions. Our capital works carry forwards are still too high, not to mention the significant line of credit being used for day-to-day operations.

These matters have been documented, verified, and explained to us councillors and, pleasingly, to the community in a transparent, easy to understand way. I acknowledge and thank Council staff for the community briefing sessions explaining our financial reality to residents.

It is important that we recognise that these budgetary failings are taken seriously and that there is a need to change our ways.

I acknowledge the work of the General Manager and the Finance Director, a position that has only existed in the past twelve months, that we now have this information in front of us and a plan to fix it. Council staff have managed to reduce that projected $14M deficit to $8M for 2024-25. This is commendable and I congratulate the staff for their diligence, but obviously we can’t stop there.

As Council is about endorse the draft 2024-25 operational plan and budget, I believe it important these challenges are openly, honestly and transparently ventilated in the Council Chamber for the benefit of the community.

Council commends the analysis undertaken so far by the Finance Director and General Manager and acknowledges the Financial Strategy. Council also notes further work will be needed to maintain a balance between service to the community and living within our means and that open engagement and communication with our community will be foundational in our approach.”

The General Manager’s Response to the Motion is “Council’s Finance Strategy, adopted in December 2023, aims to support and guide our approach toward financial sustainability.

Successful community briefings, held this year and last, show that ratepayers are engaged with Council’s financial challenges and the solutions we are posing. We also know there is little appetite in the community for radical service reductions or massive rate rises.

With that in mind, we have been careful to identify savings only where there will be little impact on the services we deliver. To achieve this, we’ve reprioritised our capital works programs and modified some services, as outlined in our 10 May media release, on the website, and the recent public meetings.

These are all prudent, careful adjustments to our work program that will help save money with minimal impact on services for the community. They will be monitored carefully and reviewed annually.

We will also continue to provide timely, honest updates to the community as we work through this enormous challenge.”