Financial Sustainability Review

The eagerly anticipated independent Financial Sustainability Report, prepared by Professors Joseph Drew, Yunji Kim and Masato Miyazaki from the University of Newcastle, was tabled at Council's August Ordinary Council Meeting.

The Report confirms that while Council has no immediate liquidity concerns, Leeton Shire Council is not financially sustainable over the long term, with projected budget deficits over the coming decade posing a serious risk to the general fund. The Report also highlights the need for timely and prudent action to strengthen revenue streams and reduce expenditure, where possible.

At this stage, no decision has been made regarding a Special Rate Variation (SRV). However, it is considered likely that an application to IPART (Independent Pricing and Regulatory Tribunal) will be required in the future. Council has accepted the Report’s recommendation that additional preparation work over the coming months is needed before any such application is even considered.

To guide this important work, Council has established a Financial Sustainability Advisory Committee (FSAC), comprising ten (10) suitably qualified community representatives, the Mayor, two (2) councillors and two (2) Council staff (outdoor and indoor).

The FSAC will be chaired by Professor Drew and will meet fortnightly, commencing in early October when he plans to visit Leeton in person.

A Terms of Reference guiding the Committee’s purpose and responsibilities was also endorsed at last night’s Council meeting. Its role is to examine the Report’s findings and pursue the list of recommendations having regard to Leeton Shire’s unique values, priorities, and financial constraints. This will include looking at what is practical, affordable and sustainable for the future of our community. The Committee does not, however, have any decision-making functions and any investigations made by the Committee will go back to the elected Council for consideration, deliberation and determination.

Leeton Shire Council will provide regular updates to the community following FSAC meetings to ensure transparency and keep residents informed of the Committee’s work.

Useful Links

• Professor Drew's YouTube Channel