Council Approves Cost Saving Measures for Financial Sustainability

Published on 25 June 2024

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Council has approved a series of service reductions aimed at ensuring financial sustainability over the coming 12 months.

The measures are expected to result in cost savings of $1.25 million and include reduced operational hours for libraries, pools, and resource recovery centres, as well as a temporary pause on the council’s annual sponsorship and donation programs.

Interim General Manager Steven Pinnuck stated that despite previous cost-saving efforts, the recent decision by the Independent Pricing and Regulatory Tribunal (IPART) to deny SVC a further special rate variation has intensified the council’s immediate financial challenges.

"Since 2020, the organisation has achieved productivity savings of $1.4 million. However, in the face of high inflation and significant cost increases, these savings have been outpaced by rising expenditures," Mr Pinnuck explained.

"In the last financial year, our focus on improving efficiency in corporate systems, managing employee leave, injury management, and reducing overtime resulted in a substantial saving of $350,000 compared to the previous year," he added.

"These new measures will ensure the council can maintain sufficient cash reserves throughout this financial year," Mr Pinnuck noted.

The approved reductions include changes to operating hours for libraries, pools, and resource recovery centres, which may unfortunately lead to several partial or full staff redundancies.

"We are currently consulting with the staff directly impacted by these changes, in accordance with the provisions within the Local Government Award," Mr Pinnuck said.

It is expected that the operating changes will be implemented in the coming months.

-ENDS-