Sustainability and Affordability Challenges

Georges River Council takes great pride in its role of providing and maintaining high quality local services to our community. If Council is to continue to deliver the current level of services and facilities, we need to effectively plan for the future.

The Community Strategic Plan details the community’s aspirations for the Georges River area over the next 10 years. This Plan highlights many community projects, programs, initiatives and events that require substantial funding to become a reality.

Council, in preparing the LTFP recognised a number of challenges it will face in the near future.

The challenges, if unaddressed, may have adverse impacts on the long-term financial sustainability of Council. These challenges are summarised below:

• The declining profitability trend has been addressed, with the receipt of the Special Rate Variation in 2021/22 and cost initiatives undertaken by Council. The challenge remains in maintaining strict discipline and adhering to the long-term financial plan.

• Rising inflation and the flow on effects on costs of services provided may exert pressure on expenditure without being offset by similar increases in income.

• Wages growth is expected to exceed average rates.

• A marked reduction in development activities is currently being experienced in the Local Government Area (LGA). It is unclear at this stage how long trend will continue and the extent of the trend.

When reviewing the actual results of Georges River Council so far, Council has generated surpluses each year since amalgamation. However, these actual results have been favourably impacted by additional operating and capital grants received from the State Government, to assist with the transition to functioning as an amalgamated council and Gains from Disposal of Assets.

The COVID-19 pandemic presented fresh challenges to Council’s efforts to improve its financial position, with the financial impact of the pandemic accelerating the financial deficits that were forecast in future years. Council provides 200 services which our community members value and are essential to a thriving and growing community. Council has and will continue to find savings, efficiencies and implement improved operating models in conducting its operations.