Fiscal Star report denied

Wyong Shire Council has refuted claims of financial vulnerability made in a report prepared by Review Today.

The report, which looks at the financial sustainability of Local Government across New South Wales, alleges Wyong Council is financially vulnerable based on 2006/2007 financial figures.

Council's Acting Director Corporate Services, Greg Ashe, said the report was prepared independently of Council and is based on information more than 12 months old.

"Council declined to participate in the survey on the grounds that the intention of the review was unclear," Mr Ashe said.

"The methodologies used by the company are not the recognised performance measures used by the Department of Local Government as published in the annual financial statements.

"In 2006/07 Wyong Shire Council was in-line with or favourable with the relevant benchmark for a growth council on four of the five ratios including Unrestricted Current Ratio, Debt Service Ratio, Rates and Annual Charges Ratio, and Asset Renewals ratio.

"Council's 2006/07 Financial Statements were audited by the internationally respected firm Price Waterhouse Coopers who confirmed Council's position is both sound and stable."

Council continues to engage with the Community through the annual Management Plan to ensure it remains financially viable both now and in the future.

The 2008/09 Management Plan has recently been available for public comment and has been adopted by Council.

The community can be assured Council's future sustainability is being managed by a number of long term programs including the Shire Strategic Vision, Tuggerah Lakes Estuary Management Program and Water Plan 2050.

"The community can also be assured Council is being prudent with the management of debt, with Council being virtually debt free with regard to general operations," Mr Ashe said.

"The debt Council has taken on is being wisely used to fund infrastructure investment in our long term business activities such as water supply."

Council also believes the report is flawed in a number of ways.

"The report refers to its indicators as "estimates" which indicate the flaw in taking 12 month old financial information and extrapolating this forward in an attempt to predict the future," Mr Ashe said.

"It does not take into account Council's future plans … estimates of this nature are questionable.

"It is widely acknowledged many Councils are under significant financial pressure and this is exacerbated by the State Government imposing extra costs on Councils such as cost shifting, rate pegging, the increased costs of legislative compliance and reduction in levies for developers.

"Council continues to work with the Local Government Shires Association and the State Government to improve the financial capacity of local government and the State Government has recently engaged the Independent Pricing and Regulatory Tribunal (IPART) to complete a review of Rate Pegging."

Media contact: Cameron Bell (02) 4350 1667

Page last updated: 28/07/2008