ORANGE City Council has ended the financial year in surplus but it would be a knee-jerk reaction for residents to clamour for a rate cut.
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Running this city is a bit like running a $90 million business, income and expenses can fluctuate during the year leaving the city struggling to cover costs.
Add to that the fact that almost all of the city’s budget is allocated to regular expenses like wages, facilities and services, and there is very little discretionary spending left for cost blow-outs or unexpected projects councillors might want to fund.
A meagre surplus of $395,000 is really an indication that the budget was comprehensive and accurate, and both staff and councillors were very disciplined when it came to unbudgeted spending.
Although the fact remains that council’s rates and charges are high compared with similar councils, it should also be noted the annual budgeting process has not been one of big surprises.
There have not been applications to the Department of Local Government for rate rises above the annual rate peg and major capital works projects have been funded by savings, grants and affordable loans.
Residents will, of course, disagree about where money should be spent and what projects should get priority, but it is difficult to argue this very comfortable city is living beyond its means.