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Financial Sustainability Study

21 March 2007

Circular Head Council Mayor Ross Hine welcomed the release of the LGAT commissioned "A Review of the Financial Sustainability of Local Government in Tasmania" prepared by Access Economics.

Circular Head Council Mayor Ross Hine welcomed the release of the LGAT commissioned "A Review of the Financial Sustainability of Local Government in Tasmania" prepared by Access Economics.

Mayor Hine indicated "This independent report is a valuable snapshot for all Tasmanian Local Governments, and will help better inform interested parties of the composite picture. While the report has not yet been presented for consideration by the Circular Head Council, my initial reaction is that it validates the responsible fiscal management approach taken by this organisation."

General Manager Greg Winton said "Put simply, this report is validation that the financial policies and finances of the Circular Head Council are sustainable with a significant margin of comfort.

The Council is well aware of the need to ensure appropriate levels of expenditure to address the infrastructure backlog as revealed in Chart 1-6. While Access Economics consider the backlog for Circular Head to be relatively modest, the Renewals Gap Ratio in Chart 1-13 clearly demonstrates the extent of effort the Council is exerting to make continued improvements. Our net financial liabilities position is the best in the state, suggesting significant scope for the use of additional borrowings for capital expenditure purposes, should inter-generational equity considerations be deemed appropriate by the Council."

Mr Winton indicated "The medium term challenge for the Council is not so much the financing, but rather the continued capacity to deliver best value projects in a competitive skills shortage environment."

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Authorised for general media distribution by Greg Winton, General Manager, Circular Head Council on Wednesday 21 March 2007.

Office: 33 Goldie Street, Smithton, TAS 7330
Postal Address: PO Box 348 Smithton, TAS 7330
Telephone: (03) 6452 4800
Facsimile: (03) 6452 4861
E-mail council@circularhead.tas.gov.au

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