General News
9 August, 2024
'Challenging' week for mayor and CEO
Mayor Robyn Gulline acknowledged the fallout from council's botched budget submission - 22 days after the legislated deadline - had proved a "challenging week".
As a result of the delay, Horsham Rural City Council has been reported to the Local Government Inspectorate.
"With the importance of truth in mind, I look forward to the outcome," Cr Gulline said in the weekly council newsletter.
"While there are some inflammatory claims being made in the media, I want to reassure you that we have a valid operating budget that is fiscally responsible and provides the facilities and services that our community needs."
Council CEO Sunil Bhalla says council's failure to meet the budget deadline was despite the commitment and diligent efforts of council staff.
“The financial pressures placed on all council budgets in the current rate capped environment are significant and the focus was at all times to present council with a sound, fiscally responsible budget for operational activities and capital projects,” he said in a statement.
“Despite the committed efforts of staff, in particular, our diligent finance team (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 30 June target.
"This was achieved three weeks later at the July meeting.”
Councils are required under the Local Government Act to adopt their budgets by June 30 and present an annual report to the community and state government each year.
Mr Bhalla said 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.
He said council had followed legal advice.
The 2024-2025 budget was eventually adopted at the July 22 council meeting.
Three councillors - Claudia Haenel, Ian Ross and David Bowe - last week broke ranks saying the failure to meet the budget deadline had placed council staff under intense pressure and caused significant reputational damage to council.
They maintained neither council nor the community had been appropriately briefed and that the missed deadline represented "failure by our leaders".
Mr Bhalla disagreed.
“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.
“It was a difficult decision to delay the adoption of the budget, but our highest priority was to deliver the right budget for our community to deliver the services and facilities needed.
"Part of this decision was also about ensuring that our councillors had sufficient time to fully consider the budget prior to finally adopting it.”
Mr Bhalla was at pains to point out that the delay in adoption of the budget "did not impact council operations and the delivery of important community services such as waste collection, roadworks and maternal and child health, that continued as usual".
In a letter to Mr Bhalla on June 26, following a request from Mr Bhalla to extend the deadline, Local Government Victoria executive director Mike Gooey said council's ability to raise rates and charges on properties and to expend its revenue could be "in jeopardy".
Mr Gooey has reported Horsham Rural City Council to Victoria's Chief Municipal Inspector, Michael Stefanovic, head of the Local Government Inspectorate.
The Inspectorate assesses and investigates complaints about potential breaches of the Local Government Act by councils, councillors and staff.
Mr Stefanovic has the ability to prosecute anyone found to be in breach of the Act, and he in turn reports to the Attorney General.
The Horsham Times on Friday sent a list of questions to the Local Government Inspectorate. They have yet to respond.
We also this week invited the CEO or mayor to respond to the statement released last week by Councillors Haenel, Ross and Bowe.
Neither wished to comment.