NAB Government Business has released its 2010 Financial Management Insights report, a comprehensive analysis of key financial metrics of Australia’s local councils.
Outlining the financial performance of local councils, recent trends and challenges for the sector, NAB’s third edition of the report is a useful resource to help councils deliver community services in a financially efficient way.
Generally speaking, the report shows that Australia’s local council sector is in a strong position, with national revenues growing at a rate of 8.9 per cent, the highest of the last five years.
Council expenses nationally have grown at a rate of 7.3 per cent, driven in particular by high interest expenses resulting from councils locking in fixed borrowings at higher interest rates. Council cash flow surpluses also declined from $451 million to $2 million year on year.
New asset growth is down on last year but conversely, debt ratios have decreased, leaving the sector generally in a good position to address the infrastructure issues that concern all councils, irrespective of state.
The report also includes trends in the sector such as prioritising efficiency measures, increased focus by council on business continuity planning; council amalgamations; and funding pressures on infrastructure funding.
These trends are described with actual case studies. For example, the cost savings and streamlined processes achieved by amalgamating three Queensland councils to form the Moreton Bay Regional Council; the importance of continuity planning after the Victorian bushfires and 2010 floods in Queensland; and the $50 saving per transaction achieved by Penrith City Council resulting from them broadening their card program.
NAB Government Business is providing local councils with trusted advice and innovative financial solutions to efficiently service the community.
To discuss the report results and how NAB can help you achieve better financial management success for your local council, please contact David Brown, National Managing Partner – NAB Government Business, on 0414 528 398 or david.brown@nab.com.au
The report is available at www.nab.com.au/fmi
NAB Government Business has a team of specialised government bankers around Australia offering a range of financial products and services tailored for local, state and federal governments. For further information visit www.nab.com.au/government
*Copy supplied by NAB Government Business
