Parramatta denizens aren’t the only ones celebrating as the council reports strong financial growth, and they didn’t even have to break the rate cap. Image: Jamie Williams/Sydney Festival Parramatta Opening Party.
Cities love to brag, especially if they’re growing as fast and furious as Parramatta City Council to become Sydney’s second central business district.
While the rest of the world stands on a knife-edge after reports of plummeting stocks, a severely weakened Aussie dollar and general economic turmoil, you’d be forgiven for thinking global collapse is imminent.
But not when local governments like Parramatta paint a more cheerful picture of their own financial standing – and the force is strong with this one.
The council announced its unaudited financial results for the 2014-15 financial year, with revenues growing by $20.2 million despite the City’s annual rates increase being capped at 2.3 per cent.
Rate capping has been a significant financial burden on councils in New South Wales, but Parramatta has managed its fifth consecutive year in keeping rate increases roughly in line with inflation.
The council compared itself to neighbouring councils that have imposed bigger rate increases on their constituents such as Holroyd, which has announced its rate payers will be slugged with an increase of 7 to 8 per cent over the next five years.
City of Parramatta Lord Mayor Scott Lloyd said the city’s strong financial position has provided a platform for further investment in the community.
With more money in the bank, the more the council can invest in crucial projects, which it did during 2014-15, when it boosted its investment in infrastructure such as roads, bridges and footpaths by more than $45 million.
The council said spending on community-based services increased by more than $20 million, or almost 10 per cent.
Mr Lloyd said these results show that Parramatta has performed strongly, is growing its revenue and is controlling costs at a time when it continues to provide increased services for the community.
“The growth in revenue is a result of increased investment in the City reflecting the confidence investors have in Parramatta as Sydney’s second CBD,” Mr Lloyd said.
Evidently there’s been a war of words between Parramatta and Holroyd Council, with Mr Lloyd rejecting Holroyd’s assertions that Parramatta has a debt problem, and saying that the council “was comfortably able to service its borrowings thanks to its strong balance sheet”.
“Parramatta has prudently chosen to borrow over the long term to fund its service and infrastructure requirements unlike some neighbouring councils which have chosen to charge their ratepayers with rate increases far in excess of the cost of living,” Mr Lloyd said.
According to the council, its balance sheet has grown significantly over the financial year with investments increasing by $130 million, and total assets have been valued at more than $5 billion compared to $3.9 billion in 2013-14.
“Net Operating Result after removing capital income and other one-off items doubled over the previous year to finish with a small surplus while councils net cash position is positive by $126 million,” the council reported.
