Upper Lachlan Shire Council predicts “reduced deficits” over the next decade, despite an improved financial position. Photo: Upper Lachlan Shire Council Facebook.
Major property sales, contract reviews and an increase in in-house services have helped to improve a Southern Tablelands council’s books.
In late 2023 Upper Lachlan Shire Council (ULSC) accepted an independent review of its financial situation by AEC Group, which came with a series of recommendations for improving it.
In a statement, the council described its financial position as now being “sound”, pointing to overall savings of $4,145,302 being achieved over a two-year period.
It also said the council’s unrestricted cash position had grown to $1.524 million as of last year (compared to $117,000 in 2023).
Council’s CEO Alex Waldron announced the news to the community in a recent statement.
“I am incredibly proud of what council has achieved,” she said.
“[This] hasn’t been an easy road for council or the community, however this was necessary and our improved financial position reflects that necessity.”
During their latest meeting councillors received a report detailing the financial position.
At the time, ULSC Director of Finance Andrew Croke said the past two years had provided opportunities to review ULSC’s financial position.
“This has allowed us some time to, obviously, look internal, get efficiencies, improve the way we do things, look at what services … we didn’t want to pursue, and we could outsource to a number of businesses within the community.
“We’ve undertaken a number of other reductions in some of our surplus assets.”
According to the report, the council sold a block of land and two council-owned businesses that were surplus to its needs.
It also withdrew from the contract for the Taralga Post Office and from the accredited Visitor Information Centre program.
The council decided not to offer subsidised market rental prices for council-owned and controlled commercial properties.
Savings were also made by hiking some fees and charges and cutting back on maintenance for local sportsgrounds, parks and gardens.
The report states one-off cash injections brought in $2,003,272, while changes to maintenance schedules brought in $94,517.
The report also states that 16.7 full-time equivalent staff jobs were removed following a restructure. This, along with bringing services in-house, contributed to savings of $1,357,238.
“There were significant service level changes and reductions, and whilst they, at times, were not popular and very difficult for this organisation and the management to deliver … it was important that we took those measures to ensure the long-term viability of this council,” Mr Croke said.
In November 2023, the council also abandoned a plan to seek a rate hike, after putting in-principle support behind the plan earlier that year.
Mr Croke said the council’s improved financial position would give it more flexibility and capacity to push ahead with further infrastructure replacement and renewal, in particular for roads.
“That’s allowed us to increase our unrestricted cash and resources, to be able to respond swiftly if we need to and take advantage of opportunities – or obviously, if there’s natural disasters or other disasters.”
However, he noted deficits were expected over the long-term.
“We’re looking at basically 10 years of operational result deficits, albeit reduced deficits, which may increase over that 10-year period.”
In its statement, ULSC also flagged its hope to achieve a minimum of $2 million in unrestricted cash, as recommended by AEC Group in its report.
