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Prudential management spreads dollars further

When Stonnington's first Council was elected in 1996, it had an operating deficit of $3.5 million. Originally aiming to reduce this to $1.2 million, Council has in fact now turned this deficit into a surplus. This turnaround means more money is available for capital works projects to maintain assets and improve facilities in line with the wishes of residents and businesses in Stonnington.

"Prudent financial management has ensured that we are getting the most out of every dollar to meet community needs," Mayor Gahan said.

Chief Executive Officer, Frank Tait said the turnaround reflected the fact that Council was able to maximise the benefits resulting from Compulsory Competitive Tendering, sound financial management, and plain hard work and commitment by staff at all levels in the organisation.

"We are now in a position to fully fund asset maintenance and embark on new infrastructure projects," he said. "Some of our key projects take advantage of historically low interest rates for borrowing."

Although rates increased in 1998/99, Stonnington is still one of the lowest rating Councils in the State.

"Over the past three years, State Government imposed rate capping limited increases in line with the Consumer Price Index, and the former Commissioners cut our rates by 30 percent," the Mayor said. "This created a backlog of much needed capital works."

Council plans to invest $25 million in the current financial year to carry out improvements to roads and buildings, step up its streetscape improvement strategy, enhance its parks and playgrounds and refurbish major assets, such as the Harold Holt Pool.

It will also allocate funds to developing an Open Space Strategy in line with residents' wishes.

For further information contact Frank Tait, telephone (03) 9823 1333.

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