Council too thrifty for its own good

BY ADAM BLACK
The City of Sydney council has defied global economic trends, producing an operational surplus of $28 million for the first quarter of this financial year.
That figure is $7 million higher than the forecasted budget of $21 million, which has caused concern as to how the council is using ratepayers’ money.
Labor councillor Meredith Burgmann said: “It just seems to me that there is so much that needs to be done, that having an operational surplus is not a good idea.
“The operational surplus is about running the council on an everyday basis. With that kind of surplus, [council] should be reducing the money that actually comes in and spending more on services like maintaining the parks.”
Major reductions were forecast for the financial year for capital works programs such as open spaces, parks and bike projects. Greens councillor Chris Harris said: “The main reason we have a surplus is because capital expenditure that was expected to be made wasn’t made.”
Dr Burgmann added: “In the present financial downturn the council shouldn’t be contracting its services, it should be expanding them, particularly with the money available.”
The council’s financial report says the extra money “reflects slight increases in operating income, and a number of operational savings”.
Liberal councillor Shayne Mallard believes parking meter revenue has played a part in delivering the surplus.
“No doubt its parking meters and parking fine collection,” he said, “you’ll usually find that’s a lucrative way to raise revenue.”
Dr Burgmann concurred: “That’s a huge part of their budget. Parking meters and rates are the main way in which the City of Sydney gets income.
“One of the things I’ve been quite interested in is turning off parking meters on the weekends, to encourage people to enjoy the beautiful CBD, which is often quite dead on a Sunday.”
Council also saved money on salaries and wages. They originally budgeted for an annual expenditure of $138.727 million. However a favourable result in the first quarter has put the new forecast at $135.011, a saving of $3.716 million.
This outcome was described in the first quarter review as the result of “higher than anticipated staff vacancies”.
Cr Mallard denied there had been job cuts, saying that the current vacancy rate was around five or six per cent, and that this was a transient situation.
According to the first quarter review, the council spent no money on environmental development, an area which Dr Burgmann believes council has neglected.
“They should be using it on proper maintenance on the parks and green spaces,” she said.
“There’s no point in creating new parks without giving them adequate maintenance.”
Mr. Harris said: “I would like to see any extra money spent on environmental matters’ to identify further opportunities to install solar panels and reduce our electricity consumption.
“One of the things that’s way behind is the bike plan; I’d like to see more resources, more urgency put into that because it’s way behind.”
Cr Mallard believes the money could be put to better use elsewhere. “I think the council is already investing quite heavily in green energy and sustainability,” he said. “I think it should be strained back into the business sector and into boosting our economy.”
He mentioned a wireless internet service as something he’d like to see the money used for.
Although the council is undecided on how best to use the operational surplus, one thing is certain ‘ there’s a lot of work that needs to be done.
“$7 million is a large surplus’ it’s a very wealthy city,” says Dr. Burgmann. “That money needs to be coming back to the residents rather than just sitting there as an operating surplus.”