Mayor column: with Cr John Harvie

Published on 05 December 2024

Murray River Council local government area covers 11,865 Km² and has a population of over 12,500 residing in our towns, villages and rural districts.

That is a population density of just slightly over 1 person per Km². Compare that to Canterbury Bankstown Council in Sydney which has a population density of 3,290 people per Km². Our low population density makes it more expensive, per capita, to provide infrastructure, services and amenities.

In my last column I provided details about council’s financial position which showed that we will operate, this financial year, with a surplus of about $9million. However, that is before allowing for annual depreciation costs of about $20million. Annual depreciation of $20million is the annual cost to maintain councils’ assets, that total about $1.4billion. And as a result, we end up with an annual deficit, on paper, of about $11million.

We are required by the Local Government Act 1993 and associated regulations to take action to ensure that Murray River Council is financially sustainable into the future and to take all reasonable steps to avoid burdening future generations with excessive debt (Intergenerational cost shifting).

So, what assets does council have to maintain? Of the $20million of annual depreciation costs, about $10million is spent on maintaining and renewing roads, bridges and footpaths. The other $10million of annual depreciation is spent on maintaining and renewing other assets which include:

• 8 water treatment plants and associated delivery infrastructure (pipes, pumps and valves) servicing 9 communities
• 8 sewage treatment plants and associated delivery infrastructure (pipes, pumping stations, and valves) servicing 8 communities
• Drainage systems servicing 8 communities
• 12 dedicated Town Halls
• 13 recreation reserves and clubhouses/pavilions including tennis courts, football and cricket ovals and floodlighting across 11 communities
• 55 parks, 39 playgrounds & 25 public amenities servicing 13 communities
• 11 offices including 5 customer service centres, 3 libraries, and 4 aged care and community transport centres
• 8 depots plus plant and equipment
• 294 other buildings in 15 communities
• 25 Rural Fire Service, fire stations and 6 State Emergency Service centres
• 2 swim centres servicing 2 communities
• Waste Management Centres including 2 landfills and 4 transfer stations
• 18km network of levee banks protecting 3 communities

The financial sustainability of local councils in NSW is a major concern and a challenge for Murray River Council and our residents. In my next column I will discuss the road to financial sustainability.