Depreciation not appreciated
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After crying poor in the lead-up to the special rates variation decision, Eurobodalla Shire Council discovered a new source of cost-saving which has enabled it to reduce next year’s estimated general fund budget deficit from $4.6 million to an almost respectable $1.6 million.
To achieve this sudden $3 million reduction in costs, has the general manager taken a pay cut?
Perhaps councillors have forgone their allowances?
Maybe the mayor has returned his company car or the huge car fleet at Moruya has been reduced?
Regrettably, no.
The source is a simple accounting trick.
Next year council will yet again change the way it depreciates the shire’s assets, reducing the charge to its bottom line.
Why has it done this?
I’m guessing, but I suspect it has more than a bit to do with positioning itself to demonstrate it can meet IPART’s new fit for the future criteria, which requires a return to surplus in this fund within five years.
Why subject yourself to the necessary pain of real improved efficiency or non-essential service reduction when you can get your accountants to do your dirty work?
Pain is only for mug ratepayers.
Paul Bradstreet, Surf Beach