Hurstville City Council has worked fast and hard to make a significant improvement to an anticipated deficit in its 2004/05 budget. Eighteen months ago the forecasted deficit for the year was $8.1 million but the actual figure approved by Council to go to the auditor is now $2.8 million. The substantial savings have been achieved by a series of initiatives undertaken by Council to rein the deficit. These strategies are now impacting on the bottom line and have set the course for future improvement.
Hurstville’s Director of Administration, Jeffrey Tripp, said that Council recognised it had to do something quickly. He said a lot of hard work and tough decisions contributed to the turn around.
“Cost control was very important,” he said. “Council bought all project managers together in a series of workshops to come up with ways to deliver efficiency savings. All staff were encouraged to contribute their ideas. A range of operating expense savings and capital expenditure deferrals were reviewed with Councillors, and tough decisions were made collaboratively.”
“We recognised that we had been too severe with depreciation rates on our roads,” he said. “Our streets were in far better condition than our balance sheet reflected. We have now changed the depreciation rate and this has contributed to alleviating the paper deficit. Another bit of relief came through an unbudgeted property transaction. Council traded its Centennial Bakery, a historic museum, to St George Masons for a more attractive site to Council, the Masons held in Mortdale, at a handy book profit.”
Jeffrey Tripp stressed that there were no miracles in the turnaround, just responsible business practice.
“Having made these initial improvements, infrastructure renewal is the challenge for the future,” he said. “Government cost shifting, rate pegging, wages escalation and greater community demand for services have squeezed Council’s finances to the point where we have not been able to reinvest in roads, drains, parks and buildings at a sustainable level.”
Hurstville Mayor, Jane Morris, said she is extremely proud of Councillors and officers who worked hard to achieve this turn around.
“Council is very firmly on the track of recovery and this course will be doggedly sustained,” she said. “This is a remarkable achievement in 18 months. It marks a 65 per cent reduction in the deficit in that time, and a massive 11 per cent reduction in operating expenditure.”
Council’s Annual Financial Reports have now been presented for external audit. For further information contact Jeffrey Tripp on (02) 9330 6222.
