Dear Editor,
I would like to take this opportunity to clarify some matters relating to recent correspondence to your paper regarding the proposed merger of Boorowa, Harden and Young Shire Councils. Such clarification should not be interpreted as any sort of personal attack and is supported by audited data which has been freely available on the Young Shire website for approximately 3 months. Your readers may not be aware that the Local Government Act requires all Councils to post their Audited Financial reports on their websites along with the Annual Report no later than 5 months after the end of the financial year.
The Young Shire audited financial reports for the financial year ended 30th June 2015 shows the total loan debt held by Young Shire Council was $13,570,000.
The largest part of this debt is attributable to borrowings for renewal of the Young sewerage treatment plant. All loan repayments for the Sewerage system renewal borrowings are fully funded by the Young Sewerage Operations fund and not from anywhere else. In essence only those properties which are able to connect to the Young Sewerage system will pay for the system.
In order that future users of the system will also contribute to the capital cost of the renewals, Council has elected to use borrowings as the primary financing method.
This will ensure that there is some inter-generational equity in terms of cost for both current and future communities.
No doubt your readers would be aware that Councils are required to disclose their levels of Restricted cash, Cash Equivalents & Investments in their financial reports and I am pleased to confirm that Young Shire held reserves of more than $17million consolidated across the General Fund, Water Fund & Sewerage Fund as at 30th June 2015.
I can assure you and your readers that Young Shire is not struggling under debt, as may have been suggested in fact the record shows that it has achieved 5 consecutive years of operating surpluses and continually maintained a cash expense cover ratio well above the benchmark for the same period.
I encourage everyone to visit their local Councils website and familiarise themselves with the facts relating to the financial performance of local government so that the debate may continue in an informed and constructive manner.
Brian Ingram.
