After running a budget deficit which peaked at just under $9 million in 1997, Whitehorse is now on track to achieve a balanced budget in 2000/2001.
Council has been able to achieve this result without placing an undue burden on its ratepayers.
In fact, as a measure of Council’s efficiency, it still has one of the lowest levels of rating, on a rates per assessment basis, of any metropolitan Council in Victoria.
General Manager Corporate Services, Ed Small, said the development of a five year plan in 1996/97 started the turnaround.
Under the plan rates were raised slowly at 1.5% above the CPI. At the same time Council limited recurrent expenditure without compromising service levels.
“In fact service standards have risen,” Ed Small said.
“This is evidenced by Whitehorse returning one of the highest levels of satisfaction in customer surveys compared to other Councils.”
He said the turnaround has been achieved largely through keeping costs down and maintaining a strong line on controlling expenditure through a low level of delegation on purchasing policies.
“All purchases over $10,000 are competitively tested,” he said.
“This creates a big disincentive to spend money unnecessarily.
“Likewise, all ordering is carried out electronically and therefore is always subject to scrutiny.
There are strict controls over staff appointments and all senior staff increases have to be approved by the CEO.”
In addition, a summation of Council accounts is presented to Council on a monthly basis. This requires managers to keep a careful eye on their department’s financial performance and also keeps elected members aware of Council’s financial position.
Ed Small said the changes give a consistent and appropriate rationale to expenditure. However, he is adamant that tight fiscal control does not compromise good management.
“We take a no nonsense approach,” he said. “But we do spend money where there is a strategic need.”
For further information contact Ed Small, telephone (03) 9262 6333
