CITY OF FREMANTLE FINANCES A CONCERN
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.