Coffs Harbour City Council will use a new budgeting strategy to help identify its top priorities for spending and saving in 2009–2010.
“We have a new Council, so we want to take a fresh look at the financial picture and priorities,” said Council’s General Manager, Stephen Sawtell. “That’s why we have adopted a zero based budgeting approach. With zero based budgeting, each manager scrutinises their projects, looking at need and resources, then costs them in detail, makes a risk assessment and creates a priority list to present to Council.
“We are confident that zero based budgeting will assist us to identify the real priorities.”
Stephen Sawtell said that the new approach aims to ensure Council is operating as efficiently as possible, and targets potential savings.
“Our goal is to find up to
$3 million in savings, which will provide an extra $1 million for new facilities and services and address current shortfalls,” he said.
Council is also establishing a ten year financial model to plan into the future with more accuracy than ever before.
Council’s Director Corporate Business, Craig Milburn, said this is part of the City’s continuous improvement program and will ensure that Council continues to operate in the most efficient way possible.
“Coffs Harbour has a good record in sound financial management, but we are all living through global financial uncertainty at present,” he said. “There’s no doubt that the international economic crisis will have direct and indirect impacts on Local Government. This is in addition to the range of financial pressures we have faced for some time.
“The property sector is depressed and still uncertain, while the construction boom in Western Australia and Queensland has contributed to steep rises in materials costs, which have been sharpened by rises in commodity prices.
“Cost shifting is impeding all councils’ ability to deliver services to the community and maintain essential infrastructure and New South Wales councils are also shackled by an
$8 billion infrastructure backlog. This is growing in New South Wales at a rate of around $500 million per year.
“In Coffs Harbour, we are looking at a $160 million backlog. Years of State Government ratecapping have left councils with an unbridgeable gap between financial reality and the resources available.
”There will be some tough decisions ahead, but by adopting clear financial strategies, we are making sure that Council, and our community, is in the best possible position for the future.”
For further information contact Stephen Sawtell, telephone (02) 6648 4000.
