Positive report on Council’s financial performance

The City of Holdfast Bay has received a positive report card for its historical, current and future financial performance from an independent statutory authority.

The Essential Services Commission of SA (ESCOSA) determined in its report published this week that they found “the City of Holdfast Bay Council’s historical, current and forecast financial performance to be sustainable.”

The report said this was due to “operating surpluses, moderate rate increases and responsible use of borrowed funds.”

As its role as an advisory body, ESCOSA reviews councils’ long-term financial plans, infrastructure and asset management plans, and revenue sources.

It provides advice to all 68 South Australian councils across a four-year cycle and the City of Holdfast Bay was among 19 councils in ESCOSA’s most recent year. Other city and regional councils included the City of Port Adelaide Enfield and the District Council of Streaky Bay.

The report, which is a public document, also determined that Council’s “Long-Term Financial Plan provides for adequate funding of asset renewals and replacement while meeting operating expenses without borrowing excessively.”

Council was also commended in the ESCOSA report for its “pro-active approach to managing its assets”.

“It has been transparent with the Commission and other stakeholders via its strategic asset management practices”.

The report also said that “Council has a range of sound practices in its strategic planning and asset management”.

While acknowledging Council’s comprehensive Asset Management Plans, its forecasting of future borrowing costs, and its extensive community consultation, ESCOSA also provided several recommendations to “strengthen the Council’s sustainability” including ensuring that depreciation amounts accurately reflect asset consumption and minimising rate increases above inflation.

Council’s Long Term Financial Plan is reviewed each year as part of the Annual Business Plan and Budget process.

The plan maps out the financial sustainability of the city into the future, while meeting the needs and expectations of our community. The plan also allows for early identification of potential financial issues and their longer-term impacts.

The current Long Term Financial Plan 2025-26 to 2034-35 can be found on Council's website.

ESCOSA is an independent statutory authority with functions in a range of essential services including water, sewerage, electricity, gas, rail and maritime services, and has a general advisory function on economic matters.

It provides advice to local councils under the Local Government Act 1999.