Council has a target to improve its efficiency and save $2M this year – which is less than 1% of its gross operating expenditure.
At Council’s May meeting, Cr Corinne Lamont raised questions about the lack of transparency on how council would meet its efficiency targets.
The draft long term plan forecast efficiency savings of about $11.1 million by 2031-32, starting from July 1 with a first year saving of $2M.
The councillors didn’t care for Cr Lamont’s detailed questions on how council was going to achieve that but adopted a motion from Cr Doug Eaton which Cr Jane Smith said was a motion that simply asked for reassurance.
It asked for affirmation from the CEO David Farmer that efficiency improvements should mean delivering the same or improved service with the same or fewer resources, rather than reducing service levels.
It also wanted to know the methodology underpinning the program.
What did it get?
No affirmation from the CEO but a report from the CFO.
The report repeats these two words a lot: “may include”.
It also has “may result” and “are indicative only”.
The report lists some possible targets.
1/ Upgrades to the computer system continue and might improve efficiencies.
2/ Service reviews of child care centres; leisure centres, property portfolio; the tip and customer service might result in “revised service delivery models”.
3/ Other possibilities are workforce management improvements;
4/ a shift from transactional buying to planned buying;
5/ improving asset management planning;
6/ collecting data and analysing it for possible improvements.
The first part of the coming financial year will be devoted to measuring the baseline.
“While the overall targets can be achieved, it is currently challenging to set accurate targets for every function,” the report states.
“A benefits realisation approach will establish baselines, measurable indicators, timeframes and accountability.
“Some efficiencies will generate direct savings, while others will improve capacity, reduce risk, strengthen controls or improve service responsiveness.”
This report includes a comment seen many times before: that if council wants to keep its level of service, it will need to keep the rate increase from 2021-22 that is due to drop off in 2031-32.
The report – to be tabled at the June 29 meeting – recommends councillors simply receive the information.
$2M in council terms is less than 1% of council’s annual income.
The monthly financial report states that Council’s year-to-date operating surplus has a favourable variance of $2.4m.
“This variance ($2.4M) represents less than 1% of Council’s gross annual operating expenditure of $900,” the report states.
And $2M is even less than $2.4M.
The screenshot shows how much money council has in cash and investments – this comes from the June Council agenda.
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