The WRA has been doing analysis on the ESC application by WCC on the desperately needed funding for the Asset Renewal shortfall and found according to the WCC budget we will have a surplus in the Asset renewal without the rate rise. According to the ESC application and the 2019-20 Budget the asset renewal fund will hit a surplus in 2021 see below.
Based off WCC figures we can see a surplus of 380K without the extra rate cap funding or around 4 million with the rate cap funding.
WRA has asked this question to WCC and received this response from David Harrington, Manager of Financial Services:
“The asset renewal expenditure quoted on page 38 of the ESC application represents the specific amount that Council allocates towards asset renewal and addressing the backlog….In some years Council may invest more on asset renewal due to large Government Grants (ie. the CBD Renewal), however this may not address existing items within our asset renewal backlog”
This doesn’t seem to make sense to us at the WRA.
If we are in such a dire financial situation and cannot afford to keep up the funding to the current assets managed by WCC why is it we are taking on new projects?
The big question is why do they need all this extra funding?
It’s not the first time WCC has gouged rates have a look below at the rates rises in the 5 years before the government cap was brought in.
Rising rates 18.4% above CPI and what is the reason for this?
Well after talking with David Harrington he freely admits that it is due to the WCC having an Enterprise Bargaining Agreement raising wages by 4.5% per annum.
No wonder now we are paying 87c in the dollar in our rates towards the wages at WCC and we are struggling to cover the legislative requirements needed by council to maintain current assets.
Until council rectify this situation we firmly believe the Higher cap is a band aid Solution and we will be in this situation in another 2 years.