LPSC actively engaged in State Government’s Fit for the Future program determining future of local government - In 2011, the Destination 2036 Conference of Mayors and General Managers agreed that changes to the way local government (LG) operated in NSW were necessary to ensure the future sustainability of the sector. As a result the State Government appointed an Independent Local Government Review Panel to make recommendations towards more efficient, effective and financially sustainable LG. The Government’s response is the Fit for the Future (FFF) reform program. Liverpool Plains Shire Council (LPSC) is currently working its way through this process, including financial, restructuring and talks with neighbouring Councils. “A NSW Treasury Corporation (T-Corp) report in 2013 found LPSC had a weak financial sustainability rating and a negative outlook based on its rate base and requirements for infrastructure renewal. Since the report, LPSC has undertaken various measures to address long term financial sustainability as required by the State Government. As part of a wider restructure, Council engaged a Chief Financial Officer (CFO) who is investigating the upgrade of financial reporting software and streamlining operations within the accounts section. One of the huge projects the CFO is undertaking is reconciling the new assets register with the general ledger, a difficult task given changes in accounting procedures over many years. This project must be undertaken to meet the requirements of the independent auditors,” said LPSC Mayor, Councillor Andrew Hope. “Working towards the State Government’s requirements and as a result of measures taken to date, the 2013/14 financial results have seen LPSC’s deficit before capital grants and contributions decline from $1,911,000 in 2012/13 to $1,086,000 in 2013/14, a reduction of $825,000 or 43%. “This result is expected to improve even further in 2014/15 with additional income from the special rate variation approved earlier this year and from various cost cutting measures implemented when preparing the current budget. LPSC is planning to be in surplus by 2016/17 at the latest plus meeting the seven financial sustainability performance measures required for a Council to be considered FFF,” Councillor Hope said. “Additionally, LPSC has held talks with Gunnedah Shire Council, again part of the FFF program. At this stage it appears that both Councils believe that their communities will be better served by remaining separate entities however both councils will examine resource sharing opportunities to drive down costs. The FFF program also proposes Joint Organisations, designed to advocate on a regional basis, share services and collaborate on infrastructure projects and LPSC along with Gunnedah, Narrabri, Tamworth and Walcha Councils, have been successful in becoming one of five pilot Joint Organisations, for a State Government trial of the model,” he continued. “After all the pros and cons on this issue and the financial forecasts have been further examined, reports will be distributed to the community in early 2015 and public meetings held. The community will be asked to decide whether they favour or oppose amalgamations, the services they expect and what the community is prepared to pay for those services. All the information people will require to make an informed decision will be available and a healthy, dignified debate will be encouraged. Persons interested in more information about FFF can access details at fitforthefuture.nsw.gov.au/,” Councillor Hope concluded.
Posted on: Fri, 28 Nov 2014 00:16:28 +0000