By JONATHON HOWARD
NOOSA Council mayor Noel Playford has attempted to address financial criticism towards the council, stating that his critics were entitled to their opinions, but in this case “they’re completely wrong”.
Several long-time Noosa residents have been closely monitoring the council’s financial records and have raised concerns about the long-term viability of Noosa Council.
The concerns stem from the Queensland Treasury Corporations (QTC) line of credit for the cost of de-amalgamation, as well as capital works and IT infrastructure costs.
Jeff Nuske said he wrote to Minister for Local Government David Crisafulli expressing his concerns and asked the minister to investigate the matter.
“The minister has been told Noosa Council’s financial plan for 2014/15 appears to be achievable, but make no mention as to the council’s ongoing financial viability and if council will be able to maintain the three sustainability ratios required by QTC in the long term,” Mr Nuske said.
“I believe Noosa Council’s financial position 2015/16 will be weak since cash reserves, investments will need to be drawn down, along with perhaps increased borrowings.
“The 2015/16 financial plans already include a 3.1 per cent increase in rates, this may also have to be increased.”
Mr Nuske, who is not alone in his concerns, claimed Noosa Council was facing a large de-amalgamation cost of up to $12 million required to be paid back in full by 31 December.
This, Mr Nuske said, was added to the rising cost of Noosa Council’s IT systems and the $22.7 capital works bill, which combined to make a debt of $34.7 million.
Mayor Playford said the bill to QTC was not $12 million, rather it currently stands at $2.2 million, which he said had been budgeted for.
“The people you are talking to understand little about local government finances,” he wrote to Noosa Today following a line of questions.
“For example, the notion that we have to find the $22 million (approx) for the approved capital works program in the budget is nonsense.
“The funds are already provided in the budget from this year’s revenue (rates etc), and the capital works program has been approved in the budget, so it’s not discretionary.
“And every local government with an approved capital works program in its budget must have provided for the cost within the budget. Unless they are budgeting for an equivalent deficit, which would be unheard of.”
Mayor Playford said he was not attempting to put people down, but thought his financial critics had been silenced long ago.
“They’ve been proven wrong so many times, you’d think they would have retired injured well before now,” he said.
In response to questions about the QTC line of credit, mayor Playford said the debt currently stands at $2.2 million not $12 million.
“The QTC line of credit stands at $2.2 million,” he said.
“The line of credit is to be repaid by 31 December, and the repayment is provided for in the current budget.
“Both the QTC repayment and the cost of the capital works program are provided for in the current budget.”
Noosa Council did not introduce a general rate rise in this year’s budget and upon taking over from Sunshine Coast Council, the Noosa Council made job cuts and streamlined council processors in order to achieve a leaner council.
In response to Mr Nuske’s letter, Minister Crisafulli wrote he would, in consultation with the Queensland Auditor-General, “continue to monitor Council’s financial position and future financial sustainability”.
“In addition, council’s financial statements will be reviewed by the Auditor-General, in accordance with the process established for every local government in Queensland,” he said.
