“Wollongong books in the red
BY LAUREL-LEE RODERICK Illawarra Mercury 27/06/2009
Financial matters are looming as the greatest challenge facing Wollongong City Council’s administrators, 15 months after they were appointed to clean up corruption.
The administrators’ 12-month report to Local Government Minister Barbara Perry, obtained by the Mercury, says it will take a “number of years of focussed attention” to bring the council’s operating budget back into the black, after a series of substantial deficits.
Operating deficits of about $26 million, excluding capital grants, are projected for each of the next three years, despite $6.7 million in savings during the past year and more projected savings.
The report says the administrators “inherited significant financial problems” in meeting the increasing costs of basic needs and catching up on a backlog of unfunded infrastructure maintenance.
It also suggests the council cannot afford to complete its ambitious plans to revitalise the Wollongong city centre – including Crown St Mall and Civic Plaza – without securing additional funding.
The update reports enable the State Government to gauge when the organisation is ready to return to a democratically elected council.
But the administrators make no mention of that issue in their report and in May, Ms Perry confirmed the administrators would stay until 2012.”
Full story
http://www.illawarramercury.com.au/news/local/news/general/wollongong-books-in-the-red/1552205.asp
