It is now the end of September and the end of another year is rapidly approaching. Winter is usually a quieter season for the community and Council and we are now gearing up for spring followed by summer as we all come out in the better weather.
Over the last six weeks a significant report has been released which is the Long Term Financial Report for Hepburn Shire. While this review has not finished, it has brought to the fore some important issues and clear facts. These are critically important to debunk some rumors and to enable focusing and information that is critical for informed strategic decision-making as we move forward.
Some key findings that I believe are worth noting:
- The whole local government sector is in financial stress resulting from a legislatively constrained environment which prevents local governments from increasing income to keep up with increasing costs.
- Hepburn Shire is neither the best nor the worst. In the scheme of things we are in the middle when compared with other Councils around the State.
- We have a clear issue in terms of rates being collected. As we have over $5M in outstanding debts from rates, we are developing a plan to work with community to support those who are having difficulty paying, and what to do for those who will not pay but can.
- We have a real and tangible issue in-relation to renewal of infrastructure. We have a lot of old facilities that we have inherited and require significant upgrade.
- We are repaying loans which are impacting our available cash, however they are being paid back quickly and will be gone in a few years. This will improve our ability to save money to invest in future capital projects.
The information from this review is continuing to be developed to give us a clearer picture and we are expecting part 2 in November of this year.
What does this mean?
For the next couple of years and the rest of this Council term things will be financially challenging. Council will need to make difficult decisions for us to live within our means. This will require change to how we do things and traditional ways of using facilities, ie. what we can do and how we do it will need to be reviewed. Change by its nature is disruptive. As your elected representatives we will need to make most likely unpopular decisions, however we will be seeking to inform these decisions through engaging and listening to you, our community.
Finally, a quick thank you to everyone for your support over the recent period of disruption. Your welcome back and ongoing support is so appreciated.
