ADJUSTMENTS TO SHIRE OF GNOWANGERUP 2017/18 BUDGET

28/8/2017

The WA Local Government Grants Commission advised in August 2017 that the final Financial Assistance Grants (FAGs) cash allocation to Western Australia is lower than originally advised by the Commonwealth in the May estimates. This is primarily as a result of new Census data becoming available in June.

The net result to the Shire is shown below:

General Purpose Component

Budgeted:                           $398,080

New Figure:                        $339,684

Budget Amendment:     $58,396

Roads Component

Budgeted:                           $272,715

New Figure:                        $272,858

Budget Amendment:     ($143)

Overall Adjustment Required

$58,396

($143)

$58,253 budget shortfall

In addition, Main Roads WA has also advised that, due to State Government budget constraints, it has reduced its annual road preservation grant to the Shire as follows:

Budgeted                            $142,735

New Figure                         $83,729

Budget Amendment:     $59,006

It is less than ideal that the State and Federal Governments seem unable to adhere to the estimates they provide to Local Government.

In summary, the Shire’s budget position has been weakened by the amount of $117,259. Due to previous good financial management, however, it is anticipated that the Shire will be able to make up this shortfall without a reduction in services, from a combination of a decrease in budgeted transfers to reserve and from end of financial year adjustments. Council is mindful of the current economic climate and, due to the aforementioned financial management, was able to limit the overall rate increase for 2017/2018 to 3.5%, rather than the 6% stated in its Long Term Financial Plan.

Shelley Pike

CHIEF EXECUTIVE OFFICER