In Bass Coast Shire’s Annual Report, the expenditure section of the report shows Council has spent $86.934 million of our money for the year ending June 30, 2019.
The underlying result of over spending resulted is a yearly loss of $9.55 million (see page 9). This underlying result went from a surplus of $1.54 million for 2017/18 to a $9.55 million loss, a turnaround of $11.09 million.
This underlying negative result was reported as a long-term concern of Council by the Victorian Auditor General 2018/19 report.
Council’s expenditure results shown in the Comprehensive Income Statement page 104 shows:
Employee Costs $30.303 million up $2.003 million.
Materials and Services $29.146m up $2.590m.
Depreciation and Amortisation $19.612m up $5.783m.
Borrowing costs $622,000 up $41,000.
Net loss on disposal of property, infrastructure, plant and equipment $923,000 down $77,000.
Other expenses $6.329m up $2,812m.
Total expenditure $86.934 million up $12.852 million.
Total income $89.025 million up $4.952 million.
Looking at these figures and the $9.55 million Loss for the Underlying result (not shown on the Income/Expenditure Statement) no wonder the Victorian Auditor General and Cr Les Larke have reported a major concern continuing into the next Council budget 2020/21 and more than likely for many years to come.
The next councillors’
election on October 24, 2020, will be the day this financial mess will be handed over. I for one will be looking for c
councillors who have had financial training and experience.
Multiple big-ticket high cost Capital Works items requiring continued borrowings combined with the expected rates rises each year is not always the right direction.
The trend at present with this councillor group is to keep on spending big time. It would seem someone else will sort out the financial dilemma later. You might say much later.
Our councillor group are right now forming a draft budget 2020/21 and in doing so the Chief Financial Manager will provide costings.
Now is your opportunity to email your ward councillor to put your views and to suggest works to be considered for the coming budget.
Have your say.
Connecting footpaths usually is budgeted at about $70,000 per year. I believe this financial figure must be increased (doubled) and compacted gravel used in place of concrete. It’s cheaper and effective.
All children’s play locations to have additional swings, in most cases two.
Larger projects must have split financial allocations. Design phase revenue, construction stage revenue.
Borrowing revenue must not be taken up until the construction stage or in May of a year.
What do you get for your rates payments? What will you get in the future?
Don’t forget it’s our money. It’s our rates and taxes.
Graham Jolly, Cape Woolamai.