Budget adopted
Posted on 26 Jun, 2012
MEDIA RELEASE
26 June 2012
immediate release
Budget adopted
At June’s Ordinary Council meeting the Alice Springs Town Council adopted the 2012 to 2016 Municipal Plan, which includes the Budget estimates for the 2012/13 financial year incorporating a 7% rate increase.
Mayor Ryan said “I am pleased to present this budget to the community, as despite a local media report, there is no deficit and in fact this is a responsible budget.”
“The amount that was misinterpreted was depreciation, a figure which must be budgeted for but is not a cash amount.” Said Mayor Ryan.
CEO Rex Mooney said “Council realises the importance of providing responsible, responsive and accurate management of ratepayer funds.”
“I would like to assure the community that Council is doing this and is in accordance with the accounting regulations as well as the Local Government Act.” Said Rex Mooney.
In accordance with section 127 (3) of the Local Government Act and Part 6 of the Local Government (Accounting) Regulations, Council must not budget for a deficit.
A deficit occurs if overall expenditure for a financial year (disregarding depreciation) exceeds income. Depreciation is a non cash item hence the reason for the Act to not include it as a cost to be considered in determining whether a Council is in deficit or not.
There were no submissions received from the public and the plan will come into effect from 1 July 2012.
ends
For further information contact:
Damien Ryan (Mayor) M: 0428 825 392
Rex Mooney (CEO) M: 0427 161 956