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.