2008 Financial Sustainability Study Released

Review Today has released the 2008 edition of FiscalStar’s financial sustainability assessments for the largest 100 NSW councils. The report is titled “The Financial Sustainability of the Existing Financial and Infrastructure Policies of NSW Councils – 2008 Review”. Dexia Credit Local Asia Pacific Pty Ltd, a subsidiary of the European bank Dexia which specialises in local government public finance and supports research into local government around the world, sponsored the report.

The report rates the sustainability of the financial and infrastructure policies of each of the largest councils in NSW which together serve 95% of resident population. It also estimates the increase in rates, fees and charges necessary over the next ten years for councils with large deficits, debt and infrastructure backlogs to become financially sustainable. 

The main findings are:

• 35 of the 100 largest local councils in NSW will need to increase their rates, fees and charges by 80% to 200% over the next ten years (Assuming price inflation averages 3% per annum over the same period) or be forced to severely cut their services if they are to restore their finances and infrastructure to prudent and responsible levels.
• For another 19 councils the increases are of the order of 60% to 80%.

This means that the existing policies of half of all large councils in NSW fall short of being financially sustainable. The FiscalStar study is based on the latest annual financial and infrastructure data published by councils as well as additional information councils provided in response to a questionnaire.

To download the public statement by Review Today on release of the report

To download the 2008 report - Volume 1

Volume 2 of the report contains technical details in respect of each of the 100 councils.

To download individual council technical reports at www.fiscalstar.com.au

The report was released at the "Benchmarking Best Practice in Local Government" conference by Professor Percy Allan AM.

To download the Professor Allan's PowerPoint presentation to the conference

As part of the improved processes for the 2008 assessments, Review Today requested councils complete and return an information request (Attachment A) to FiscalStar Services Pty Ltd.

To download the information request to councils (Attachment A)

To download the information request to councils (Attachment A) as an Excel spreadsheet