NOSTRADAMUS YORK:

Predictions for the 2017-2018 Financial Year. 

“The State Government intends to ‘Review’ the Local Government Act 1995 ‘AS a Priority’ to ensure Local Government Areas provide good government, enhanced through greater openness, transparency and accountability”. This is a ‘FACT’ that the Shire of York should make itself aware of and what the local ramifications may be!

OVERVIEW
The Annual Inflation Rate should be the appropriate standard measurement for Local Government rate increases, otherwise as former Premier, Colin Barnett, inferred, increases above this amount show that a particular Local Government Area is seriously mismanaging its financial affairs in its use of rate income and government funding.

Based on current local rate returns, the Shire of York will have a 25% shortfall in revenue for the 2016-2017 Financial Year from its expected income as of June 30, 2017. This will be carried through to the new Financial Year. This is not inclusive of State and Commonwealth grant funding that is highly unlikely to be increased significantly and should not be heavily relied on.

The Shire admits that to meet its current mandatory, statutory community servicing and economic development obligations it requires a rate increase of 3.75% to 4.5% over the next 3 years, otherwise the extent and standard of service may be reduced. This is up to three times the current annual rate of inflation.

It appears the Shire will now adopt a 1.5 % increase in rates for the 2017-2018 Financial Year, exactly the same as Australia’s Annual Inflation Rate in 2016. This is because of community anger, not shire financial competence. 

The Shire has undertaken an overall expenditure of $187,000 to recoup old debts of $326,000. Its attempt to fully recover monies owed by Settlers House will fail because its lawyers, at great expense, have continuously advised it of such- for the past eight years.

According to Ms. Susie Haslehurst the Shire gets a monthly account from its Debt Collection Agency without (proper) detail. This is a shocking indictment of expenditure without substantial records being requested and kept at the Shire Offices- being the break-down of this expenditure. It suggests the same low standard of record keeping as has occurred with previous council administrations.

The Shire is continually failing to provide innovative platforms, including eventing that will accelerate tourism development and provide for future population and business growth.

Given the State Government’s intent, the Shire of York should be mindful of the following.

PREDICTIONS

a) The Shire will divest itself of its Tavern Licence for the Forrest Bar & Cafe thereby relieving itself of some cost burden, including but not entirely limited to, purchases of stock being food and beverages, utility costs and the provision of staff with its attendant salary and related on-costs.
 As owners of the property they will retain the costs of maintenance, insurance and debt repayment.

The major sporting clubs will be the lessee and responsible Licencee, under a suitable sporting club liquor licence and be accountable for stock purchases, utility costs, staffing and payment of rent.

b) The Shire of York will be subject to an official investigation over its expenditure (including cause and effects) on the York Recreation and Convention Centre, relating to its use of Royalties for Regions funding and the overall negative impact of the final 400% increase in total project cost has had on the Shire’s financial situation.

This will be as part of an extension of the investigation relating to the cost of Government expenditure on projects within the Metropolitan Area and some Royalties for Regions funded projects in Rural Regional and Remote areas.

c) Because of the York Recreation and Convention Centre the Shire of York will be listed as one of the 16 ‘High Risk’ Local Government Areas by the Department of Local Government for the 2017- 2018 Financial Year.

d) The Shires poor financial performance over the past 4 years, including exorbitant rate increases, will see its financial accounts for the 2014-to-2017 Financial Years forensically audited by the Department of the Auditor General.

e) The Shire of York’s record keeping will be monitored by the Department of Local Government to ensure compliance with recording standards required under the State Records Act, 2000.

f) The Shire of York will be engaged in legal proceedings in the 2017-2018 Financial Year.

David Taylor.