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Council makes difficult budget cuts

At its Ordinary Meeting yesterday, Great Lakes Council agonised over a number of difficult decisions relating to how the current budget deficit of $866,000 could be reduced to a balanced position.  The General Manager, Mr Keith O'Leary, said that this action was necessary as Council's application to increase the business rate for 2009/10 to provide an amount of $250,000 to be allocated to the tourism budget was recently rejected by the Minister for Local Government.

Mr O'Leary said that as Council had started 2009/10 with a budget deficit for the first time, the Minister's decision to reject the rate application resulted in the deficit increasing to around $866,000. 

He said Council considered that it would not have been financially responsible to allow this position to continue and accordingly undertook a major review of its current budget with a view to achieving a balanced budget. 

"As some $3.2 million had already been cut during the original preparation of the 2009/10 budget, the task of cutting another $866,000 was always going to be extremely difficult" Mr O'Leary added.

Of the many cuts and adjustments made to the 2009/10 budget last Tuesday, the major items include the following:-

• Closure of Bulahdelah and Pacific Palms Visitors Centres (saving $70,000);
• Non-opening of Tuncurry Pool (saving $50,000);
• Discontinue paid lifeguards on Elizabeth Beach (National Parks Beach) - (saving $37,000);
• Reduced levels of service on mowing of parks (saving $35,000);
• Staff freeze (saving $150,000);
• A number of other cuts and adjustments were made to achieve a balanced budget.

The Mayor, Councillor Jan McWilliams, advised that the decisions to cut services and close community facilities were some of the most difficult faced by Council in her 14 years in local government. 

Cr McWilliams also said that "Council would rather be providing new and enhanced services for its community, however the funding crisis currently facing this Council and NSW local government after more than 30 years of rate pegging and cost shifting has forced Council to make the hard decisions to achieve a balanced budget".

The Mayor also said that while many people will understandably be upset by some of the budget cuts, it is hoped that they will understand that there was no real alternative if Council is to be financially responsible.

Whilst the action taken has resulted in a balanced budget being achieved for 2009/10, the Mayor has advised that major challenges lie ahead, particularly in the preparation of next year's budget. 

In view of this the Mayor advised that in the next few months Council will be working with the community with a view to determining what services and facilities are required, as well as the service levels desired.  Council is also in the process of preparing a Long Term Financial Plan which will determine the level of funding required to ensure that Council is financially sustainable into the future.

Contact details
Great Lakes Council
Tel: 02 6591 7222
Fax: 02 6591 7200
http://www.greatlakes.nsw.gov.au
council@greatlakes.nsw.gov.au

© 2008 Great Lakes Council
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