General News
2 August, 2024
Council clarifies 2024-2025 budget process
Horsham Rural City Council CEO provides update on budget
Horsham Rural City Council issued a statement on Wednesday, July 31, clarifying its decision to delay the adoption of the 2024-2025 budget and the process surrounding it. The council claimed it was a necessary decision but a difficult one.
"It is essential that our community understands that the delay in adopting the budget did not impact council operations and the delivery of essential community services such as waste collection, roadworks, and maternal and child health, which continued as usual," HRCC CEO Mr Sunil Bhalla said.
The budget was adopted at the July 22 meeting, three weeks after the June 30 deadline, which the Local Government Association requires all councils to meet.
In a prepared statement, HRCC CEO Sunil Bhalla said the council had adopted its 2024-2025 plan at the July 22 meeting.
He explained this concluded a six-month budget process that commenced in January and included adopting the Council's Annual Action Plan in April 2024, following community engagement on the draft plan.
The Annual Action Plan detailed services and initiatives to be undertaken during the 2024-2025 financial year to deliver against the Council Plan.
According to the statement, it formed the basis of the budget adopted in July.
Mr Bhalla said that throughout this period, staff and councillors had many briefing sessions to work through the development of the Annual Action Plan and the final budget.
"The financial pressures placed on all council budgets in the current rate-capped environment are significant, and the focus was always on presenting the council with a sound, fiscally responsible budget for operational activities and capital projects," he said.
"Despite the committed efforts of staff, particularly our diligent finance team, who were also dealing with a switch to a new financial management system, it became clear in mid-June that a final budget could not be presented to council for adoption before the June 30 target.
"This was achieved three weeks later at the July meeting," he said.
"Under the Local Government Act, councils are required to adopt their budgets by June 30 and present an annual report to the community and State Government each year.
Mr. Bhalla also said that the decision to request a formal extension to the Local Government Minister Melissa Horne on June 19 was not taken lightly, given that it meant a breach of the Local Government Act and the decision followed legal advice.
"During the lead-up to June 30, councillors were briefed in detail on progress and issues with the budget, including the decision to delay the presentation and adoption of the final budget," he said.
"Delaying the budget adoption was difficult, but our highest priority was to deliver the right budget for our community to provide the needed services and facilities.
"Part of this decision was also about ensuring that our councillors had sufficient time to consider the budget fully before finally adopting it," he said.
The reasons for the budget's delay were discussed at the July meeting, and councillors had the opportunity to speak to the motion, which was passed in a 4-3 vote.
Crs Gulline, Power, Flynn, and Redden were in favor of adopting the budget.
Crs Haenel, Bowe, and Ross voted against the motion and released a public statement several days later expressing their concerns about the delay.
The councillors statement claimed they were not fully informed before being asked to vote on the motion to adopt the budget.
The Wimmera Mail-Times published Crs Haenel, Bowe, and Ross' complete statement in a separate article.