Paul Bibby
COVID-19 has had a major financial impact on Byron Council, forcing it to consider a $1m bank overdraft and to join other councils in going cap-in-hand to the State and Federal Governments for help.
But the Council looks set to offer further reductions in fees and charges to support local ratepayers and business owners struggling as a result of the economic downturn.
It may also consider cuts to some of its basic reporting functions, including publishing council notices in local newspapers.
‘While we are keeping things running as normally as possible, and this includes continuing with our roadwork works and construction programs, as well as other projects, there is no doubt there has been a major impact on our finances,’ Byron Mayor Simon Richardson said.
‘Like most Councils we run on a pretty lean budget and our budgeted and projected income simply isn’t there at the moment with next to no revenue coming from areas like pay parking and holiday parks.
‘Council is a business so there will need to be some hard decisions and reprioritising of projects in the coming months to ensure we are able to maintain our standards and levels of service to everyone in our Shire.’
However, it appears this reprioritising will not include pay cuts to Council’s top executives, some of who are earning more than $150,000 a year.
When asked whether such a move would be considered to save momey, a council spokesperson said ‘this is not an option being considered at this stage’.
At last week’s meeting, councillors voted unanimously to join other local governments in NSW in asking the State and Federal Governments for immediate financial assistance to support council employees, especially in early education and care.
The Council has also asked for stimulus funding to councils for projects to help sustain council operations and boost local economies.
The move comes as NSW Minister for Local Government Shelly Hancock this week gave council’s permission to reduce some of their financial and other reporting activities.
This included delaying the adoption of operational plans, budgets and financial statements, and removing the requirement that council notices be advertised in newspapers and instead allow the relevant notices to be published on council websites.
Local newspapers across the state rely on revenue from Council advertising to support their operations. Given that most are already experiencing reduced revenue owing to COVID-19, the move could force some to the wall.
It is not known whether Byron Council will adopt this particular cost-saving measure.
The government has also removed the requirement for documents to be made available for inspection at council offices if the document is published on a council’s website or made available electronically.
The Council is planning to consider further reductions in fees and charges for ratepayers and business owners at this week’s full council meeting.
This includes suspending debt recovery action for unpaid rates and fees other than issuing a reminder notice.
It is also looking at a further six-month deferment of developer contributions for sewerage contributions.
At the same meeting council will consider establishing a bank overdraft facility for $1,000,000 and authorising the General Manager to establish this facility.
The measures have been recommended by Council staff, based on a report by Council’s finance manager James Brickley.
As I sit at the bar sipping my middy of VB draught, $2.50, nice head, I read in the Byron Echo that Byron Council are being forced to consider a $1 million overdraft. Nice headline. That is something to swallow.
Simon says: “Council is a business”.
That confirms what I’ve thought now for some time: local councils aren’t governments, but businesses trying to justify their existence while they deliver under-par “services”. Time to abolish these parasitic operations across the nation. They are a third level of “government” that we don’t need; they’ve passed their use-by date.
A friend once said to me, “people who claim to have no money always seem to find what they need for their alcohol, tobacco or drugs” . It seems the same priorities apply to funding the premium salaries of Byron Council staff while also reducing services and asking for financial assistance.
Great time to fix the roads in Byron… some of the CBD roads are atrocious. No excuse fir business owners not to pay their rates on time. In tough times people should not automatically expect a handout.
Agree with all comments.
Regards
A 15year Ratepayer
Have to agree with Simon comments, Councils are a business.They cut services to make sure they make a profit.Yes get rid of councils, level 3 of our taxing bodies.