Strong fi­nan­cials

Pilbara News - - Opin­ion - Peter Long Peter Long is the City of Kar­ratha Mayor.

Ev­ery year the Depart­ment of Lo­cal Gov­ern­ment and Com­mu­ni­ties sur­veys all 138 lo­cal gov­ern­ments in WA to de­ter­mine their fi­nan­cial health in­di­ca­tors.

This is a mea­sure of a lo­cal gov­ern­ment’s over­all fi­nan­cial health and is cal­cu­lated from the seven fi­nan­cial ra­tios lo­cal gov­ern­ments are re­quired to cal­cu­late an­nu­ally.

These in­clude mea­sures of the sus­tain­abil­ity and re­li­a­bil­ity of our in­come, our abil­ity to pay our bills, our abil­ity to ser­vice our loans (we don’t have any), our main­te­nance of our as­sets, our op­er­at­ing sur­plus and our sav­ings.

Other fac­tors in­clude the range of ser­vices of­fered, the ef­fi­ciency of ser­vices de­liv­ered, and com­mu­nity sat­is­fac­tion.

An FHI re­sult of 70 and above in­di­cates sound fi­nan­cial health.

The max­i­mum re­sult achiev­able is 100.

I am pleased to re­port the City of Kar­ratha gained equal eighth place in the State this year, with a score of 92 per cent.

This is in spite of a mas­sive reval­u­a­tion of the City’s as­sets up­ward (now we are re­spon­si­ble for $850 mil­lion of as­sets) with the con­comi­tant ex­tra de­pre­ci­a­tion and main­te­nance costs. Coun­try and re­gional shires are at a big dis­ad­van­tage com­pared with their city cousins as they have many kilo­me­tre of roads to be main­tained by rel­a­tively few ratepay­ers and dif­fi­cul­ties with economies of scale, staffing and trans­port costs — which makes me even hap­pier with our re­sult.

I would like to con­grat­u­late coun­cil­lors, chief ex­ec­u­tive Chris Adams and our ex­cep­tional direc­tors and staff for their great work achiev­ing this fan­tas­tic re­sult.

And next year, we are go­ing for the No.1 spot.

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