Careful planning maintains Hay Shire Council’s cash position
By Tertia Butcher
Hay Shire Council expects to maintain its cash position in the General Fund, despite substantial operating deficits for the next five years.
Council said, apart from the pool replacement and new road works, the forecasts are to spend less than 60 per cent on average of its depreciation cost on capital renewal over the rest of its Long-Term Financial Plan (10 years).
“Council is in the fortunate position that over the last five years it has had an expansive capital program, largely grant-funded, which means it is low risk to adopt this strategy in the short term,” General Manager, David Webb said.
“Council is still maintaining its essential, or higher, risk capital works such as reseals, water and sewerage service renewal and high-use building works.
“Council has always struggled to generate sufficient revenue to fund its own capital works, having relied on external funding for a significant amount of its infrastructure and community assets renewal and upgrade programs.”
Included in the financial plan are the completion of the pool replacement, heavy vehicle access to Hay Aerodrome, creating a heavy vehicle rest area in South Hay and upgrading the roundabout landscaping.
Not included is the construction of a new levee bank in Hay and Maude.
Mr Webb said this project is still in the design phase and will be the largest single infrastructure project ever undertaken by Council, and arguably the most important.
“In preparation for the funding requirements, the plan does include a transfer to the levee bank reserve of $300,000 in each year.
“Unfortunately, Council does not have the funds to complete the main street master plan works, which are reliant on external funding.
“Also not included in the plan is any financial benefits to Council in regard to the large-scale renewable developments.
“This is still unknown at this point, and will be quantified, if any, when announcements are made on the successful developments.
Overall, the Long-Term Financial Plan focus is to maintain the current level of service to the community and at least maintain, if not improve, the liveability of Hay.”
