Ratepayers should be interested to know why their quarterly water and sewerage account has increased substantially in the five years to 2022.
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This was despite a commitment the dissolution of MidCoast Water into Mid Council would save the community $2 million, according to Councillor Peter Epov.
Water supply administration expenses have increased from $3.26 million to $7.36 million (125 per cent), and sewerage administration expenses increased from $3.22 Million to $7.36 million (129 per cent), he said.
Cr Epov was asking put forward the information and asked for clarification before the start of the February MidCoast Council ordinary meeting.
It is understood that the reported savings were suggested prior to the dissolution of MidCoast Water by the former MidCoast Water general manager, MidCoast Council general manager, Adrian Panuccio said.
There are several reasons for the increase in administration expenses from 2017-18 to 2021-22 for the water and sewer operations of council within the financial data return, Mr Panuccio said.
He said they include the passing of both direct and indirect charges from council's general fund to its water and sewer funds has been through a generic 'financial management' inter-entity arrangement.
"These have been classified as administration expenses due to an absence of corporate knowledge transfer from the former MidCoast Water and include items that could be better allocated across the water and sewer function, such as plant operations, maintenance and repair expenses.
"This annual allocation of attributable expenses will be reviewed to ensure that the true cost of administration is accurately captured.
"Inclusion of one-off allocation of funding towards centralised headquarters in 2021-22 of $1.4m for both water and sewer funds with this being recorded through the administration expenses area.
"Growth in corporate services functions being provided to water and sewer operations with costs being passed on through corporate overhead allocation methodology.
"This includes areas such as corporate performance and development, procurement, fleet management, corporate risk, customer relations, communications, community engagement etc."
Jeanene Duncan
Jeanene has more than 40 years experience as a regional and rural journalist starting at The Land Newspaper. She also worked for Stock Journal Newspaper (SA), McPherson, Fairfax newspapers and Rural Press, and contributed to various magazines.
Jeanene has more than 40 years experience as a regional and rural journalist starting at The Land Newspaper. She also worked for Stock Journal Newspaper (SA), McPherson, Fairfax newspapers and Rural Press, and contributed to various magazines.
