As one of the 60 per cent of all NSW councils deemed not fit in the recent “Fit for the Future” review, Greater Taree City Council demonstrated strong efficiencies, according to IPART.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
When it comes to efficiency, it’s all about achieving value for money and in IPART’s world, it’s measured by real expenditure per capita over time. GTCC's result was a healthy decline since 2011/12 in real operating expenditure by over 35 per cent.
The benchmark is used to indicate how well councils are utilising economies of scale and managing service levels to achieve efficiencies.
“Our healthy results in this area have been driven by an active focus since 2010 on reducing our operational costs,” explains Ron Posselt, general manager.
“Through service reviews and efficiency projects, over $3 million in savings have been achieved which has allowed more expenditure in the road and bridge network and a professional approach to asset management overall.
"In a nutshell, Greater Taree is a lean organisation, with significantly less staff per head of population, and per kilometre of infrastructure and hectare of open space managed”.
GTCC also met the requirement to fund its operations independently. The measure in this case requires that 60 per cent of funding should be derived from internal revenue sources, meaning rates income.
“We have little choice but to look to our ratepayers for funding, particularly when it comes to our failing road network,” Mr Posselt said.
“With 70 per cent of all federal financial assistant grants allocated on a per capita basis, metropolitan councils and those with high populations win the lion’s share, even though their rates income is already higher. It means that regional and rural communities are at a disadvantage.”
With over 1,700km of roads, and almost 200 bridges to maintain, GTCC currently allocates over 40 per cent of all rates income to maintenance and renewal of its infrastructure. This compares to the state average of 16 per cent.
Through the “Fit for the Future” process, the State government has been unable to recommend any better alternative for GTCC than standing alone. This means that in order to become fit, and to deliver safer roads across the community, the current level of rates income is not sufficient.
It is off the back of the Fit for the Future results published last week that Council will now commence community consultation around the state of the region’s roads, and the possible introduction of a Special Rate Variation (SRV) to return the road network to a fit and sustainable standard.
“The price associated with allowing our roads to continue to deteriorate is high. Not only posing a safety hazard for road users, our tourism sector and the success of our local businesses are negatively impacted,” Mr Posselt said.
For more information about roads, SRV, and upcoming consultation dates, subscribe to Stay Updated at www.taree.cc/safer-roads.