CEO says Council's financial challenges can no longer be avoided
Published on 26 April 2024
Snowy Monaro Regional Council (SMRC) CEO David Hogan warns that Council’s financial position will only worsen if it does not better prioritise spending and service delivery along with better investment in modern technology and improved systems to support our services.
‘As we prepare the next budget, we are now looking at a multimillion dollar operating cash shortfall just for next financial year. In addition, Council is overcommitted beyond both its financial resources and internal capacity to meet broad and growing community expectations. You can only spend what you have and right now we are committed to projects and services we can no longer fund to the extent we currently are. I will be upfront with the community about that,’ Mr Hogan said.
As Council considers its next budget, councillors will be asked to prioritise what must be done, what should be done, and the what's ‘nice to do’ – subject to rigorous review. It’s time for an upfront and honest conversation with the community.
Mr Hogan stated that while councillors have already made a range of major decisions in recent years to deal with some of Council’s financial challenges, such as the special rate variation, financial sustainability review in 2022, and recent aged care divestment, there is more to be done.
The CEO believes the best outcome is for the community to retain a say in what Council funds, rather than see these decisions made under administration, which is what we risk if we don’t navigate these very challenging realities well. Such is the seriousness of our situation, hard decisions are now unavoidable.
The 2024/25 budget will be focused on the services that must be delivered, upgrading systems, managing costs, and prioritising core services. The latest community survey will guide what is important, and the community will have the opportunity for further feedback when Council's draft budget goes on public exhibition in May 2024.
Mr Hogan said ‘my team and I have been upfront with councillors about our situation, as we simply do not have the financial capacity to continue to deliver on everything we currently do. We must be upfront with the community about what we can fund.’
The CEO said the next budget will require tough decisions to be made. We must focus on the facts and ask for the community's patience in getting this right, which will take time. We are trying to fix issues years in the making and many of these challenges are not exclusive to SMRC but many councils across NSW.