Inner West Council: Budget forecasts loss of $40m over 10 years

A deputy mayor has issued a stark warning, claiming excessive spending will lead to financial ruin over the next decade.

Inner West Council’s deputy mayor has warned his colleagues they may be heading down the same path as their embattled counterparts on the Central Coast after major deficits in the budget.

Councillor Vic Macri at Tuesday night’s meeting raised the alarm over what he said were “irresponsible” numbers predicting multimillion-dollar losses over the next 10 years.

According to financial figures passed around at the council meeting, the combined Inner West Council of Marrickville, Leichhardt and Ashfield has $33.7 million of cash currently but is forecasting losses topping $40 million.

Its cash assets “will continue to diminish” according to the report.

Current deputy mayor and former mayor of Marrickville Cr Macri lamented having to sign off on a budget which he said was not balanced.

“I think the council needs to learn to live within its means,” Cr Macri told the council meeting.

“As the auditor’s report on Central Coast Council showed, the blame is resting with the councillors.

“Councillors are the last lime (of defence) but there’s too much happening here.

“It’s not good enough to kick it along the way, it’s irresponsible and the outcome will be is auditors will be coming here they’ll be taking over, councillors will be sacked and our ratepayers will face hefty rate rises and there’s no control because councillors won’t be there.”

Controversial councillor Passas said allowing future deficits was “robbing Peter to pay Paul”. Picture: David Swift

Central Coast Council is in the midst of what its administrator said this week was “the greatest financial crisis in Australian local government history” after its dire economic position was revealed late last year.

Councillor Julie Passas told the same meeting the third quarter budget review, where the numbers were listed, needed a closer look at another meeting.

“If councillors aren’t serious about what’s happening here, let’s spend like drunken sailors, we’ll get another $200 million rate and ‘oh we’re okay’ but it’s robbing Peter to pay Paul,” she said.

“It’s not good enough to con the people, because it’s what we’ve been doing.

“If not we’ll be sacked and maybe it will be a good thing, maybe the message might get through.”