GRANT District Council will continue to work towards financial sustainability, according to its 10 year long term financial blueprint.
This comes as council – which is home to nearly 8500 residents – continues to struggle with “significant operating deficits”.
Council has recently released its long term financial plan that aims to ensure it can deliver services, maintain assets and achieve its strategic objectives in a “financially sustainable manner”.
In particular, the plan – from 2018-2028 – focuses on rate increases, service levels, major infrastructure asset replacement/renewal, loan debt and internal cash
reserves.
“It is a guideline for future action and encourages council to think about the future impact decisions made today have on council’s long-term sustainability,” the report said.
The plan is directly linked to council’s asset management plans that aim to predict infrastructure consumption and renewal needs and consider infrastructure requirements to meet future community service expectations.
“The plans set out the forecast capital requirements of the council for the next 10 to 20 years,” the report said.
“The plan is a moving document and will be updated on an ongoing 10 year rolling basis moving forward.”
The plan does not include any new initiatives, projects or expansion of services.
“As these matters arise and are considered by council, the plan will be updated to incorporate any future council decisions on policy, priorities, new initiatives or strategic direction.”
According to the report, council continued to incur “significant operating deficits” but was making a conscious effort to concentrate on the sustainability indicators.
“Comprehensive asset management plans for all assets act as stewardship documents in the effective upkeep and renewal of the $188m community infrastructure assets maintained by council.”
However, council will need to “generate a significant amount of revenue” to ensure assets are maintained to an acceptable level.
The report also stated the steady improvement in council’s financial position and performance over time was based on the achievement of the financial strategy.
These strategies include the fact council’s average rating levels tend to “fall in the lower region” when comparing rate returns with other rural and regional Councils of South Australia.
“With appropriate justification council may increase rates in general terms over and above the general inflation rate,” the report said.
“… increases over and above CPI will be supported by appropriate documentation to be included and detailed in each annual budget.
“Council further recognises the need to review services provided to the community as well as investigating any opportunities to reduce operating costs due to increased operating efficiencies.
“This will be an ongoing challenge to management that is essential if council wishes to operate in a long term financially sustainable manner.”
Furthermore, council has foreshadowed not building any major, new additional assets over the next 10 years unless “absolutely necessary”.
“By committing to this strategy council will be allocating resources to replacing existing assets in a timely manner as well as minimising any increases in operating costs associated with additional assets.”
Council owns and operates the Glenburnie Saleyards and the Mount Gambier Regional Airport.
These are considered significant operations.
