Asset renewal a priority
Allocating funds to the renewal of existing assets is a priority of the long term financial strategy adopted by Baw Baw Shire.
Council has adopted its strategy in conjunction with other budget documents. The strategy sets a 10 year financial framework for council with the aim of establishing prudent and sound financial management.
The long term financial strategy sets out a number of directions including:
Allocating funds to renewal of existing assets as a priority, noting that as the shire’s population expands, it will be necessary to provide appropriate infrastructure;
Optimise revenue from user charges, fees and fines by applying an annual cost escalation factor for all discretionary fees and charges;
Endorse the state government rating cap of 2.25 per cent per annum with an additional allocation of 0.5 per cent for growth;
Continue to focus on securing grant revenue for capital works projects;
Continue to review critical infrastructure renewal requirements and update its asset management plans for council assets; and,
Consider loan borrowings to fund new and/or significantly upgraded major assets that provide a broad community benefit.
Mayor Joe Gauci said critical issues such as borrowing, depreciation, the asset renewal gap, rates revenue and the level of delivered services were addressed in the strategy.
“Not only does the strategy help to guide council in its decision making over the next decade, it also gives the community an insight into the financial tensions inherent in managing such a broad and diverse organisation,” he said.
Cr Darren Wallace said the long term financial strategy was one of his favourite document.
He said it was all about making Baw Baw financially responsible, working in a rate capped environment and using sound asset management principles.
Cr Wallace said the strategy contained a “couple of pearls of wisdom” that filled his heart.
Cr Danny Goss said he believed a four year timeframe for financial planning was a better time period – “but its better to have a plan than no plan at all.”
He said this showed council was in a financially sustainable position.
He said the strategy outlined revenue and borrowings policies.
“The renewal of existing assets is extremely important otherwise we end up repairing and that ends up costing more,” he said.