Gunnedah Shire Council has delivered its first Cost Containment and Productivity Report to Councillors detailing historical and potential cost savings and efficiency gains.
To assist in maintaining Council's financial sustainability in tandem with the Special Rate Variation process, Councillors resolved Council would strive to find $930,000 through efficiency gains and operational savings over the three-year period from 2025 to 2028.
Gunnedah Shire Council Director Corporate Services, Kelly Stidworthy, said "Council has been aware of financial challenges caused by cost shifting, rate-pegging and cost increases for many years, and has already made significant efforts to improve operations and deliver services to the community without increasing rates above the rate peg.
"The report shows that more than $2.5 million in savings and $2.4 million in efficiencies have been made over those years, delaying the need to apply for a Special Rate Variation until now.
"Council will continue to investigate and make cost saving and efficiency gain improvements to meet the $930,000 requirement, but also expects further unforeseen costs and cost shifting in the years ahead. To show the full picture, the report also includes information on cost-shifting by other levels of government. In 2023/24, Council has estimated this to be $2.2 million."
The report notes that Council is using the following approaches to find the $930,000 in savings and efficiencies:
- Strategic initiatives - including the formal service review program designed to review Council's operations
- Operational initiatives - to take advantage of savings identified during normal operations as opportunities for efficiency gains and savings arise
- Future improvements - including the exploration of renewable energy savings, improved asset management practices and new revenue opportunities
The report notes that to date, Council has already implemented improvements that have resulted in:
- Close to $1.29 million in efficiency gains each year in unsealed roads improvements with changes such as: a more effective system of grading, improved gravel haulage practices and quarry practices, and the sealing of more than 60km of the unsealed road network
- Over $2.14 million as a one-off saving from grants to upgrade IT systems, review Development Contribution plans, and undertake cross-road drainage upgrades at several locations across Gunnedah Shire
- Close to $39,000 in efficiency gains each year in parks and gardens for changes including: GPS line-marking practices, improved cemetery management practices, automation of irrigation systems and improved parks and sporting fields management practices
- $251,000 a year as ongoing savings in: implementing e-notices for digital rates and water bill delivery; the sewerage treatment plan solar system; insurance savings, LED street lighting savings; and savings in the internal audit program.
Since the 2024 election, Council has realised $996,280 in efficiency gains and $117,125 in savings and has also sought funding under the Federal Government's Community Energy Upgrade Fund to install solar and energy efficiency systems at various Council facilities that would realise ongoing electricity savings if successful.
The report also details many other efficiency and cost saving initiatives implemented across Council.
Council will continue to publicly report on efficiency gains and operational savings in May each year.
To read the Cost Containment and Productivity Report March 2025, visit www.gunnedah.nsw.gov.au where the report is included on the March Ordinary Meeting agenda.
Council's Special Rate Variation application is currently before the Independent Pricing and Regulatory Tribunal NSW (IPART).
