Shire of Donnybrook-Balingup to consider reducing number of assets after long-term plan shows shortfall

A South West shire will begin the lengthy process of reducing the number of buildings and properties it owns amid concerns rates revenue will need to be lifted by 25 per cent to maintain the status quo. The Shire of Donnybrook-Balingup’s long-term financial plan, approved at last month’s meeting, showed it would need to set aside about $2.5 million each year over the next 15 years to meet loan repayments and ensure reserves funds covered maintenance requirements. With a funding gap of $1.75 million being identified, councillors unanimously voted to have shire staff report back in November about how the local government could reduce the amount of land and infrastructure it owned. Cr Alexis Davy requested the move and said the long-term financial plan had “changed significantly”. “(It) does identify the resource requirements, but does not supply sufficient data to enable rigorous and transparent prioritisation within resource constraints,” she said. “If we accept the shortfall in the long-term financial plan, than we as council have a responsibility to ensure there is a plan to close it.” Cr Davy acknowledged reducing the number of council assets would be “contentious” and lengthy, and would require a significant amount of community input. Cr John Bailey said asset management was one of the council’s big financial levers. “We’ve taken $1 million a year out of reserves in the last four years, and it’s time to put it back,” he said. “By getting our assets tidied up, we can reduce the pressure on rates to the community.” Before the debate, shire president Vivienne MacCarthy told the meeting several options were being considered to close the 25 per cent shortfall between the council’s long-term revenue and expenditure, which also included increasing efficiencies and the number of grant funding applications made. “The goal for the shire executive and councillors is to bring down the 25 per cent benchmark through a mix of these strategies,” she said. Councillors are still yet to vote on the shire’s 2024-25 rates, but Cr MacCarthy said information would be released in the middle of this month before a final vote on the budget expected in September.