In brief: Report confirms councils are over-stretched

Report confirms councils are stretched

The Country Mayors Association of NSW (CMA) has welcomed the release of the NSW Legislative Council Standing Committee report on ‘Ability of Local Government to Fund Infrastructure and Services’.

Key to the report is the recommendation the NSW government advocate to the Commonwealth government to increase its Financial Assistance Grants to Local Government from .5 per cent to one 1 per cent of Commonwealth taxation revenue.

Alongside many regional councils throughout the state, including Gunnedah Shire Council, the CMA has long advocated for the funding return to 1 per cent of revenue to help fund essential services in local communities.

CMA chairman and Temora shire mayor, Rick Firman OAM, was also pleased to see the committee’s recommend the NSW Government seek to amend the Rural Fire Service Act 1997, that RFS assets are rested in the RFS. He said successive NSW governments have made RFS assets the on-paper responsibility of local government, adding the collection of assets councils do not actually own but negatively impact their financials has been known as ‘the Red Fleet’.The CMA was until recently chaired by former Gunnedah shire mayor, Jamie Chaffey. Mr Chaffey is now standing as the Nationals’ candidate in the federal seat of Parkes.

Financial statements released

Liverpool Plains Shire Council (LPSC) has adopted Draft Financial Statements for the financial year ending June 30, 2024, at its ordinary meeting held last month.

The financial statements include general purpose financial statements, special purpose financial statements, and special schedules, each providing a comprehensive snapshot of council’s financial health and operations.

Key highlights of the statements include:

· Net assets: Increased to $619.49 million, up from $589.64 million in 2022/23.

· Cash reserves: Total cash reserves were $43.72 million, with $0.07 million in unrestricted funds.

· Operating deficit: A deficit of $3.03 million (before grants and contributions for capital purposes), compared to $1.88 million in 2022/23.

· Capital grants and contributions: Totalled $10.54 million, a reduction from $19.09 million in the previous year.

· Expenditure reduction: Operating expenditure decreased by $4.37 million to $35.57 million, primarily due to lower grant funding.