LITHGOW City Council will explore potential cuts to and removal of some council services to get its finances in line with criteria set by the NSW Government’s Office of Local Government.
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Resolved at an extraordinary meeting on Wednesday, July 27, Lithgow City Council discussed the resubmission of a statement of council finances to the Office of Local Government (OLG).
The resubmission looked at a number of criteria set by the OLG, how council performed against them, and tabled future options for how it may improve its financial situation by 2018.
Options for improving finances included reducing service levels, removing services or parts of them altogether and disposing of council assets.
Lithgow City Council General Manager Roger Bailey said it was too early to say what services would be either reduced or removed.
The resubmission states council may also improve finances through operational savings and increasing revenue through fees and charges.
It also states council may use a combination of these options but if doing so does not sufficiently improve finances by June 30, 2018 they will seek a Special Rate Variation (SRV).
According to the report a rate increase around 12 per cent is needed currently for council to reach the financial criteria set by the OLG.
The increase would be added to the council’s current SRV of 4.77 per cent.
Mr Bailey said the increase was small in comparison to those introduced in councils like Parkes Shire Council which saw one of more than 50 per cent in 2013.
Further details in the resubmission show council assets like footpaths, stormwater and buildings are depreciating at a much faster rate than other councils in the state.
Meanwhile other assets such as roads are depreciating slower than other state councils.
As part of the item’s recommendation council will also receive a quarterly report regarding the actions outlined in the resubmission.
Councillor Wayne McAndrew asked for the report to be included in the item’s recommendation.
“I don’t want to see we’ve tried one option and got nothing out of it,” Cr McAndrew said.
The division on the item was called for by Councillor Martin Ticehurst and Councillor Joe McGinnes, both of whom voted against it.