To the naked eye, recent NSW auditor general reports show a glowing account of Shoalhaven City Council finances, where a $36.6 million net surplus was recorded in 2017.
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However, council maintains it is unable to access the funds for general use.
“While the consolidated result is very positive, it is not a good indicator of the financial health of council’s general fund activities and caution is needed in how these figures are quoted and interpreted,” general manager Russ Pigg said.
“Money received from Shoalhaven Water operations or from our waste services is ringfenced meaning that legislation which surrounds the collection of this money only allows for the money to be spent on those areas of operations.
“The money that can be spent for most of the services and facilities provided by council comes out of the general fund and this fund is currently in deficit.”
Mr Pigg’s comments come in response to Shoalhaven Cr Andrew Guile’s take on council’s performance in the audit.
Cr Guile said it shows our council is performing well.
“We have a $36.6 million operating surplus,” he said.
“It’s very difficult to run any narrative that we need extra rate rises off the back of this audit.
“Our council continues to be financially strong.”
