Productivity and Cost Containment Strategies

The Council has adopted consistent operating deficits since 2012. With an average adopted deficit of $8.1 million, prior to the amalgamation.

Following the amalgamation, Council has adopted, and almost halved, the average deficit of $5 million, this is a significant improvement based on two years of COVID-19 related financial impacts.

2020/21 financial results outlined the operating performance ratio improved by 4%, bringing council closer to a budgeted surplus target in 2023/24.

Further, Total cash and investments increased by $15 million, which was a positive result attributed to the strict 2020/21 budget strategy adopted.

Unrestricted cash was a positive $7 million, comparative to nil in 2019/20.

These results have reinforced the success of council’s strict budget management strategies adopted over the past four years and the outcome of extensive community consultation.

The next three years will require Council to identify $12 million in operational savings to complete the IPART approval for the Special Rate Variation and overcome the financial sustainability issues identified in 2018.

To achieve these savings, Council can adopt a very broad range of strategies, initiatives or activities to improve the efficiency of its operations and the productivity of its workforce, and to contain costs and increase revenue. Approaches to include: • Review of assets in order to rationalise and divest property • Review of and refinancing loan borrowings • Reviewing community venue management to increase the utilisation of venues and associated revenues • Reviewing charges to ensure greater costrecovery for Council provided services • Pursuing opportunities for commercialisation and business improvement • Introducing environmental and energy efficiency initiatives • Adopting more efficient information and communications technology for a range of activities such as communications, document processing, financial transactions, outdoor staff operations, e-recruitment • Redesigning and/or removing non-statutory administrative reporting or people/performance/ project management to achieve efficiencies • Comprehensive strategic-level review of council operations including service priorities, levels of service, labour and capital inputs • Targeted reviews of discrete areas of council operations encompassing all aspects of processes, reporting, procedures, procurement, scheduling and equipment use • Reviewing service delivery standards • Organisational restructures to achieve better workforce efficiency and reduced salary expenditure • Reviewing procurement strategies, such as shared purchasing through joint organisations of councils • Improved management of workers compensation insurance claims and safety audits • Seeking private contract works for road maintenance and other services • Contracting to provide services to other councils or the private sector • Adopting waste management strategies to reduce landfill waste and associated costs • Focus on works projects that are funded from externally restricted reserves • Continue to benchmark activities and align operations where necessary, to yield optimum results • Provide financial hardship support to those adversely impacted • Mitigate the impact of external factors on

Council’s financial sustainability.