Council’s financial wizardry
The Bega Valley Shire Council has defied the odds and returned a budget surplus in all three of its funds in what has been a fiscally fraught year punctuated with potholes for the unwary.
While governments at all levels have seen their investments take a hiding wrecking bottom lines, the council has pulled off the almost impossible with their investment strategy proving resilient to the economic downturn and in fact outperforming expectations.
Council finished the 2008-09 financial year with a healthy surplus in all of its three funds. This has largely been achieved as a result of interest from investments and cuts to operating costs.
It reflects a prudent and responsible management and it is certain to be applauded by the ratepayers who have questioned the council’s revenue and expenditure performance in the past.
The financial results produced a surplus of $1.1 million in the general fund, $770,000 in the water fund and $900,000 in the sewer fund.
The amounts received over and above the original budget projections were $300,000 for the general fund, $160,000 for the water fund and $200,000 for the sewer fund.
The cynic in us will say that the increases have eventuated as a result of rate increases and shire residents do pay exceptionally high charges for sewer and water. Our sewer charge is the highest in the State and our water usage charge is the second highest in the State.
However, independent consultants who conducted an examination into the council’s operational practices in 2006 identified that the council’s water and sewer businesses had been run at cash surpluses well below levels considered prudent to adequately provide for renewal infrastructure over time.
The consultants also found that the general fund needed to be substantially improved to provide funds to address the major issues of infrastructure maintenance, and renewal.
The good news should not be interpreted as an opportunity for the council to have a big spend up.
The best we can hope for is that the surplus in the water and sewer funds may give ratepayers some respite from increased charges next year but with the challenge of finding a reuse for sewage effluent or failing that the construction of major infrastructure discharge the effluent further out to sea at a cost of about $20 million, don’t bet on the chances.
Council has indicated that councillors will decide what to do with the surplus funds soon.
If the finances have the wherewithal to permit it the surplus should be spent on infrastructure to provide the greatest benefit to the ratepayers.
The difficulty for the council will be deciding where and on what to spend it due to the rundown infrastructure around the shire.
But it is a good problem for the council to have and other councils would be envious of its position as it looks as to where it can spend rather than where to look to cut costs.
The conservatism of the Treasurer Ray Cootes has paid dividends and at times when we would have liked him to be more entrepreneurial he has proved his way is the best way and it gives us great pleasure in commending his efforts.
That’s why we love ’em
The Merimbula Special Events Committee is a dynamic group that has not only contributed to the town’s beautification but it has added sparkle to its social life.
It has been a true mainstay in the life of the community as other groups and events have disappeared because of a lack of support, its ardour is undiminished.
This is largely due to a couple of things - the committee which was formed 12 years ago still retains some of its original members and its capacity to work together and enjoy its purpose makes it a rare creature indeed.
This in part reflects the personalities of those involved who share a passion for the town as well as having a great sense of fun.
Over the 12 years the committee has raised $100,000 - not an insignificant amount by any stretch of the imagination.
The funds are derived from two major fundraising efforts - a ball, and Breakfast at Tiffany’s - both reflect the committee’s signature style. It is their brilliant management; their creative talents and attention to detail that lend the events a sophistication that one would be hard-pressed to find in a city. Their capacity to stage events to the point of perfection leaves the community spellbound and praise for the committee is certainly justified.
Twelve years of community service is a wonderful record and we hope that the committee can find the energy to continue, as Merimbula would certainly be much the poorer without their talent and generosity.