Queanbeyan Council has accepted a report more than a year after it was meant to be delivered. Photo: Kazuri Photography.
A regional council brought in more revenue and grants than expected but still came in 1.9 per cent worse than estimated, an overdue report has found.
In 2023, the Independent Pricing and Regulatory Tribunal (IPART) gave the green light to Queanbeyan-Palerang Regional Council (QPRC) to proceed with a rate hike of 64.3 per cent over three years.
IPART also included a condition that the council regularly report on the impacts.
Council documents for the early October meeting revealed that a report was meant to be included in the council’s annual report from June 2024.
However, it was left out of the reporting process.
During the recent meeting, Councillor Ross Macdonald described the reporting obligations as part of the council’s “core businesses” that it needed to carry out.
“This wasn’t a ‘nice to have’ [document] … This was a key part of our reporting obligations that were put by the IPART when approving the SRV, which is an ongoing pain point.”
He also said that a member of the public raised the overdue report in a complaint.
More than a year after it was due, the report was formally received by councillors at the meeting.
It found there were several differences between the forecast and realised long-term financial plan (LTFP).
The report found that QPRC brought in more money in grant funding and revenue than expected in 2023/24, including $57 million from capital grants and contributions.
It also states that fees and charges were $2.8 million higher than initally projected, despite shortfalls in some categories (such as fees around cemeteries and waste services).
Council also reduced its operating expenses by $1.3 million and $4.2 million from capital expenses.
“We have identified and deducated capital items that are ‘one-off’ and do not represent the ongoing operations of council,” the document also states.
“With these items excluded, the projected net operating result was a $7m deficit in year one of the three-year SRV. The actual net result is within range of the projected result, being 1.9 per cent worse than the projected result.”
According to the report, QPRC will have a positive general fund result within three years, and then a stable result of up to 4 per cent through its 10-year LTFP.
However, the report also flags possible service reductions (or a maintenance of current offerings) to reach this goal, while the council would also need to limit costs.
The meeting also heard that the next reporting deadline would be later this year.
Councillor Katrina Willis also sought an explanation of how QPRC could avoid similar delays.
In response, a staff member said council’s finance team had undergone a restructure in the past year.
“[That meant] placing additional levels of capacity and additional levels of expertise within the team so that, in future, we will be able to catch up and improve our processes and catch up on things.
“To reassure council, it wasn’t unknown to staff that it wasn’t done, so it would not have been missed. However, it was unfortunate that it wasn’t done in a timely manner.”
During the meeting, Councillor Bryce Wilson said the SRV was necessary to bring the council into financial sustainability.
“It wasn’t easy, the community [and] we are paying for it, but we are in a financial position that is sustainable.”
Council documents also state that the SRV was intended to repair a deficit in its long-term general fund and its approach to asset maintenance and renewal.
The meeting also heard that IPART and the NSW Office of Local Government were made aware of the delayed report.
