Qld Audit Office reports on Gympie Council’s financial health

State auditors have delivered their latest assessment on the long-term financial health of Gympie Regional Council. This is what it could mean for Gympie region ratepayers:

Gympie Regional Council’s long-term financial stability remains on shaky ground despite efforts by the council to drag its books back into the black.

The Queensland Audit Office has listed the council as a “moderate” risk of long-term unsustainability in its latest report on the health of the state’s 77 local government organisations.

The council’s average operating surplus ratio – its ability to keep its books in the black over a five-year period – remained firmly below the threshold required to be listed as a low risk.

The council’s rating was downgraded by the QAO in 2019 following continued operational losses.

However, the ratio is now trending up for the first time in at least five years.

Acting finance director Greg Evans said the council was expecting this to continue with a “modest” surplus expected this financial year, and continuing surpluses forecast through to 2031.

The council’s operating ratio, which is a calculation of its ability to balance its books over a five-year period, is trending up for the first time in at least five years.

Mr Evans denied the QAO’s rating meant ratepayers were facing a potential hike on their annual bills.

“The full budget … is a decision of Council and takes many areas into consideration, such as the prioritisation of funded recovery works over the next two financials years (flood impacts), future waste planning, water and waste water, and CPI increases,” Mr Evans said.

The council would continue pursuing efficiencies in budget talks with an eye on attaining a “break-even or even modest” surplus to meet targets.

The way forward may not be crystal clear though.

“This is a challenging space, especially following on from three flooding events and the need for council to prioritise recovery work, understanding that we are still collating the damage and work that will need to be delivered,” Mr Evans said.

Mayor Glen Hartwig said the report reflected the council’s work to try to rectify concerns raised in 2020.

Acting Gympie council financial director Greg Evans said the floods of 2022 poses challenges to the council’s continuing financial stability, but denied ratepayers were going to bear the brunt by way of a large hike.

“(The) CPA Financial management review report, which we released in May 2020, was very clear in the work we needed to complete,” Mr Hartwig said.

“I’m happy with the way the organisation has progressed recently, however I can’t say I’m not disappointed that we have only recently made the structural changes that were needed some time ago.

“Even with the curveballs that have come our way recently I know we are now making the right decisions for the community and importantly the long term financial position of the council.

“This isn’t our money, it belongs to the ratepayers and we need to always remember and respect that position.”

The council is one of 45 across the state the QAS has identified as being “moderate” or “higher” risk of becoming unsustainable.

The majority (26) of these councils service indigenous or remote communities.

Originally published as Qld Audit Office reports on Gympie Council’s financial health