Delivery Program 2009–2012 - Rockdale City Council - NSW ...

Long-term Financial SustainabilityThe cost of goods and services increases each year by an amount greater than our income as a result of a number ofincome constraints (such as rate pegging and other regulations on pricing). This creates a structural financial problemwe refer to as the ‘Income Gap’.Council does everything within its control to manage the Income Gap by pursuing grants, maximising discountsthrough government supply contracts and bulk buying, working collaboratively with neighbouring councils, maximisingreturns on investments, striving for excellence and efficiencies, continuous improvements, and monitoring andreviewing.In addition, Council carefully manages its income and expenditure through the use of sound financial reportingsystems; the coordination and control of the budget process within the framework of the statutory accountingrequirements.The biggest single financial issue facing Council is the need to repair and replace ageing assets, while providing newassets to meet the needs and expectations of our community.Discretionary Funds and Income GapIncome GapGap ‘managed’ to-dateMillion’sProjected GapCouncil takes corrective action each year to ensure the amount spent is equal to the amount available. However, it isacknowledged that this action to constrain costs within the income limits will only be possible in the short-term; it isnot sustainable in the long-term.Delivery Program 2009-2012 | 21