HAWKESBURY Council has predicted an operating deficit of $3.3 million in the 2018-19 financial year, provided the Independent Pricing and Regulatory Tribunal (IPART) approves its request for a Special Rate Variation (SRV).
Hawkesbury Council voted to put its draft operational plan for the 2018-19 financial year on public display at an extraordinary meeting of the Council on Monday, April 9.
The budget shows that if IPART approves Council’s request for a SRV, Council will lose $3.3 million.
If, however, the rates rise is not granted, Council will lose $3.99 million.
The Council business paper notes: “They underlying issue of the ‘silent’ consumption of assets, Depreciation, continues to be a critical issue for this Council to address.”
“Depreciation is a real cost and needs to be fully funded. Each year, expenditure on Assets should equal Depreciation...Council currently does not have the funds to do this. Council’s assets have over the years continued to deteriorate as a result of continuous underspending on maintenance and renewal.”
Council has applied to IPART to raise its rates by 9.5 per cent – or 7 per cent above the assumed rate pegging level of 2.5 per cent.
IPART has not made its decision yet, but it is expected in the middle of May.
Regardless of IPART’s decision, Hawkesbury Council will be required to pass its budget at a special meeting, scheduled for June 13.
At the April 9 meeting, councillors voted 8-4 to put the draft operational plan on display to the public.
Mayor Lyons-Buckett, deputy Mayor Calvert and Crs Ross, Rasmussen, Wheeler, Reynolds, Garrow and Kotlash voted in favour.
Crs Richards, Tree, Conolly and Zamprogno voted against.