Council expected to do more with less
AlburyCity Mayor, Kevin Mack, says the news is extremely disappointing, given that these grants are an extremely important funding source and essential to providing much needed local services, programs and facilities.
AlburyCity's long term financial sustainability has been dealt a blow with the Australian Government cutting its annual assistance grant to Council by a further 1.6%.
Council has been notified that it will receive $97,057 less that it did last financial year, which when combined with the previous year, means a reduction of almost a quarter of a million dollars.
"We anticipate we'll receive $6.1 million in financial assistance grants during the 2015-16 financial year, which represents 50% of the operating grants we've budgeted for.
"The Australian Government has capped the grants as part of its budget saving measures, whereas previously, they were indexed to increase with inflation."
Cr Mack says AlburyCity's allocated grants are not keeping pace with inflation and population growth.He said even though the Government will pause indexation for only three years, AlburyCity will receive less revenue in year four and beyond due to the cumulative effect of the indexation.
He's calling on the Government to restore the indexation of financial assistance grants as soon as possible.
"At a time when we are being told we need to be 'Fit for the Future' the Federal Government is making it harder for us to deliver the services our community needs."