Concerns over Surf Coast’s long-term financial health

SURF Coast Shire councillors have voiced varying levels of concern about the council’s long-term financial health.
The June 23 meeting included the adoption of the 2020-21 budget but discussions went well beyond the next financial year, as Cr James McIntyre moved an amendment acknowledging deficits forecast for the shire in future years.
Cr McIntyre’s amendment added to the motion that council “notes that the Long Term Financial Plan at Appendix G of the Draft Budget 2020-21 provides for a series of unallocated cash deficits, commencing with $177,000 in 2023-24, and peaking as high as at $2,111,000 in 2027-28,” and “acknowledges that it faces a Long Term Financial challenge and the importance of affirming a strategy to address this matter”.
Cr McIntyre said he was not just concerned with the figures but how they had been conveyed.
“There was a big difference between that which was put out in the draft budget for public consultation versus what we’re now being asked to adopt, and the purpose of my amendment to the motion was simply to highlight to the community we are well aware of the financial pressures we are facing… and we are taking steps to try to reduce that going forward.”
Other councillors showed greater optimism over the council’s financial future.
Cr Martin Duke said he agreed with Cr McIntyre about the need to be mindful of future challenges but did not believe the situation was a negative as the forecasts suggested.
“As you said, we need to be proactive and make sure we can continue those savings that have been coming in year on year for the last few years.
“When I first came onto council they also said in 2016 we’d be having a deficit but we’ve managed to stay out of that so far.”
Cr David Bell also noted concerning forecasts in the past had not eventuated and believed council would make the necessary adjustments.
“If you start predicting out into the future, it becomes obscure what may happen.
“Since I came onto council in 2012 there have been, at various times, dire predictions about where our budgets would take us. I think it is very good to acknowledge that on the current situation and the forecasts we have made there is the potential for a deficit in the budget in the future.
“I am sure we have not been going blindly into an abyss… with the application of our officers and our own intelligence, we will make the future brighter than it might seem at the moment.”
This year’s budget will still see the council achieve a small unallocated cash surplus, despite the challenges of the coronavirus.
Cr Goldsworthy said the council were in the process of making the necessary changes to avoid financial peril.
“There has been a significant amount of progressive reform that’s been happening over the past four years. Yes, more needs to be done, and it potentially has to be done at a faster rate. That will come at a cost to council and the community that we will have to give up certain services that we would regard as non-essential.”
The budget, along with Cr McIntyre’s amendments was passed. All councillors voted in favour apart from Cr Heather Wellington, who opposed the 2 per cent increase in rates.