Wodonga Council financial plan stirs query at high debt forecast

Engage Wodonga member Michelle Cowan and ex-councillor Mike Fraser flag concern with the prediction in submissions on the city's draft 2023-24 budget.

Ms Cowan notes the city's ten year statement of cash flows has a surplus of $25 million for this financial year and a forecast deficit of $37 million in a decade - a difference of $63,242 million.

"No explanation has been provided for the dire longer term impacts on the financial sustainability of council," Ms Cowan submitted.

"It appears that council is blithely heading for a crisis of liquidity.

"Why has this council put forward a budget without explaining the dire financial forecast, nor how it intends to prudently manage income and spending for new and ongoing projects into the future without significant detriment to future generations?"

Mr Fraser said it was clear the council's finance and budget committee had much work to undertake.

"When looking at this budget, together with the 10-year financial plan, it appears that council has asked us to accept a budget which appears to be a launching pad to financial unsustainability," Mr Fraser submitted.

Mayor Ron Mildren stressed the numbers in the financial plan were predictions and they would alter as further scrutiny unfolded.

"Over the next year there will be lots of different reviews to assess what we spend money on," Cr Mildren said.

"It's not looking at cutting jobs but there are so many things we can do differently to see more efficiency.

"It's a positive thing that these sorts of forecasts are done so the council can identify things early enough so we can adjust."

Cr Mildren believes that having a two per cent rate rise, rather 3.5 which is the cap, for the coming financial year would result in the city changing from having "a very high rating cost to where it should ordinarily be for a growth council".

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