29 July 2008 - 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”. It was sponsored by Dexia, a French bank which supports local government research around the world.

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. 

For further information go to 2008 Research Report on NSW Council Financial Sustainability or contact Bob Gaussen on 1800500035 or email: gaussen@reviewtoday.com.au.

17 March 2008 - New financial sustainability study announced

Review Today has announced an update of the financial sustainability assessments which it published in October 2007. The update will assess the present and prospective financial and infrastructure condition of each of the largest 100 councils in NSW by reference to recently published information for the 2006/07 financial year supplemented by 10 year projections.

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, has agreed to sponsor the annual publication of these financial sustainability assessments in NSW for the next three years.

13 February 2008 - Great Lakes Council reports released

Review Today has identified that Great Lakes Council has $26m of physical assets that are in an unacceptable condition and need renewal. In commenting on the findings, Review Today Research Director Professor Percy Allan said:

“Unless Council increases capital spending by $6m a year on renewing other assets when they reach their used-by date in future, the backlog of unsound, unsightly and unsafe infrastructure will escalate from $26m to $100m within 20 years.

“Indeed within 10 years the infrastructure backlog will rise from 4.4% at present to 10.5%. Already over 13% of physical assets (worth $78m in replacement cost) are in a poor to very poor condition even though only 4.4% fall below the minimum standards set for different asset classes by Council.

“Unfortunately Council does not have capacity to fund the annual $6m renewals gap; it already runs a sizeable operating deficit due to a shortfall in revenues.

“Review Today is recommending that Council consult the community on whether Great Lakes residents, local businesses and visitors are prepared to tolerate a serious and sharp deterioration in local infrastructure and if not what can be done to find the resources to stem the decline.

“We have modeled various Council spending, revenue and borrowing strategies for addressing the infrastructure problem and achieving an operating surplus that can be used for bolstering capital works.  

“The plan we propose be discussed and debated in the community involves the following measures for the next ten years:

1. Maintaining, but freezing services spending at existing levels,
2. Increasing rates, fees and charges revenue by 5.5% per annum (equivalent to an annual rise of 4.2% per property); and
3. Borrowing an extra $40m to lift the council’s debt ratio to 10% that would still be consistent with a good credit rating.

“Such a strategy is not without pain on the revenue and services fronts, but adhering to existing policy will result in a serious degradation of local roads, footpaths, kerbing, bridges, buildings, storm water drains, sea walls, recreation areas, parklands, natural environments and other assets that would threaten the beauty and attraction of Great Lakes.   

“Unless the Commonwealth and State governments come to the rescue of local government in NSW, councils will have no choice but to address the impending infrastructure crisis themselves. Great Lakes is no exception.”

For further information, please contact Bob Gaussen on 1800500035 or email: gaussen@reviewtoday.com.au.

Copies of the reports are available for download under "Great Lakes Reports".

11 December 2007 - AlburyCity reports released

AlburyCity has welcomed the release of the seven Review Today reports on achieving sustainable infrastructure, services and finances and expressed satisfaction that they represent a true and fair representation of the state of council's infrastructure.  In tackling the problems identified by the reports, General Manager, Les Tomich, has expressed concern that utilising rates and service charge increases only will not be able to overcome the Council's problem without significant grant input.  The reports will also be used as base documents for both Federal and State submissions seeking special grant funding and/or payment of rates owed either of which would contributes significantly towards rectification of the financial problems.

For further information, please contact Bob Gaussen on 1800500035 or email: gaussen@reviewtoday.com.au.

Copies of the reports are available for download under "Albury Reports".

29 October 2007 - Correction to Report

Review Today has issued a correction to the FiscalStar report on council sustainability that was sponsored by Review Today at its own expense. A copy of the corrected report is available for download under "Research Report".

There has been no change to any council sustainability assessments shown in the report.

Review Today would welcome further comments and suggestions on the report which we will publish in an abbreviated format.

22 October 2007 - Many NSW Councils at Breaking Point

A new study has found that the infrastructure and funding crisis of local government in NSW is worse than originally identified by the Local Government (Allan) Inquiry in early 2006.  

Research commissioned by Review Today shows that unless NSW local government with the help of the state and commonwealth significantly boosts its revenues, increases borrowings and restrains operating costs:

1. Only one in two large councils is sustainable based on their present financial and infrastructure conditions. The rest  are vulnerable or unsustainable;
2. Only one in four large councils is sustainable based on their projected financial and infrastructure conditions by 2015/16 with the remainder largely unsustainable; and
3. Only a handful of large councils can expect an improvement in their financial and infrastructure condition over the next ten years. A third can expect deterioration.

The latest study does not review the financial and infrastructure conditions of the smallest 56 of the 152 councils in NSW. The LGI found that most shire councils are struggling since the protracted drought has undercut their revenue base and the local and regional road networks are too big for them to adequately maintain.

The latest research was spearheaded by Mr. Alan Tregilgas of FiscalStar Services Pty Ltd who also supervised the financial modelling for the NSW, SA, WA and Tasmanian Local Government Inquiries held in the last three years.

Copies of the Media Release and FiscalStar report are available for download under "Research Report".

18 October 2007 - Wollongong City Council reports released.

The Review Today suite of six reports were presented to Wollongong City Council by Professor Percy Allan under the heading: "Wollongong City Council: achieving sustainable infrastructure, services and finances".

The reports highlight major challenges faced by Wollongong going forward and suggests potential directions for ratepayers and Council in finding solutions. On releasing the report Wollongong General Manager, David Farmer, warned that Council faced a catastrophic infrastructure failure if it doesn't find millions of dollars to put into the region's roads, parks and services.

For further information, please contact Bob Gaussen on 1800500035 or email: gaussen@reviewtoday.com.au.

Copies of the reports are available for download under "Wollongong Reports ".

30 August 2007 - Review Today is currently working with Wollongong City Council, AlburyCity Council and Great Lakes Council on financial sustainability reports.

16 February 2007 - Review Today has issued its financial sustainability assessment of Newcastle City Council. NCC is the first council to avail itself of the analysis following the release of the final report of the local government enquiry into the financial sustainability of NSW local government.

The analysis entitled: ‘The Newcastle Report: Issues for Sustainability’, is a framework on which the elected Council can make confident and long term decisions about managing city assets and finances. In the words of Acting General Manager GRAHAM CLARKE:

“The future of local government is being shaped by a variety of forces. Newcastle is on the front line in an effort to deliver better services to the community in a more accountable and sustainable way than ever before.

Professor Percy Allan and a team of internationally renowned management, finance and asset management experts have spent five months looking into Council’s financial and asset management systems.

The report provides a foundation for Council and the community to build long term asset management and financial strategies.

The Newcastle Report: Issues for Sustainability was presented to Council last night by Professor Percy Allan who conducted a nine-month inquiry into financial sustainability of local government in New South Wales in 2006.

For further information, please contact Bob Gaussen on 1800500035 or email: gaussen@reviewtoday.com.au.

Copies of the reports are available for download under "Newcastle Reports".