Freo's View

CITY OF FREMANTLE FINANCES A CONCERN

Posted in city of fremantle, economy, finances, local government by freoview on November 8, 2016

The City of Fremantle’s financial position is not very good according to the latest CoF Financial Year 2016 financial statements prepared for the Audit & Risk Management Committee, which includes comments made by the auditor on financial ratios.

A significant loss has been recorded for FY16 and well below budget, and there are pretty unflattering comments about CoFs’ financial ratios.

Assets Sustainability Ratio is below regional & state level, Debt Service Ratio which indicates ability to service debt is limited and declining, and Operating Surplus Ratio has continued to trend downwards and is below both regional and State averages.

The reports states ” …To help alleviate the continued erosion of ratios both the Council and management will need to consider ways to improve the operating position either via increasing revenue or by decreasing expenditure (or combination of both).”

I wonder how much of the expenditure is for personnel cost as there appear to be new people on big salaries popping up regularly at the City of Fremantle. Maybe it’s time for new CEO Phil StJohn to stamp down on expenditure and make his mark as this downward trend is a worry.

Roel Loopers

3 Responses

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  1. Lionel said, on November 8, 2016 at 12:57 pm

    This is due to them selling the asset base to fund things that rates are supposed to cover. Tip of the iceberg

  2. Craig said, on November 8, 2016 at 12:19 pm

    Considering CoF’s unflattering financial position & ratios – is it really the right time for CoF to demolish, borrow, and re-build the council offices, chamber & library for $45-50m as a part of the Kings Square project which still carries significant project risk?

    Will the CoF raid the investment reserve fund which is supposed to be used only for investments that provide a commercial rate of return?

  3. Mary Callan said, on November 8, 2016 at 7:29 am

    This is not good news at all.
    We are going forward from 20 years of growth and our beautiful state is in a woeful financial position.
    Where has all the money gone?


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