The deficit will be offset this year by more than $3.6 million in external grants, subsidies and financial contributions.

However, the shire’s underlying operating surplus ratio is still well below State Government audit standards.

The ratio measures the shire’s ability to pay for its operations out of regular revenue and have money left over to fund new projects.

The council’s long-standing practice of increasing revenue by charging higher rates was postponed this year after an April decision to freeze rates, fees and charges to help relieve local economic hardship caused by the Covid-19 health crisis.

Shire budget papers show that rates revenue raised this financial year will fall about two per cent short of last year’s total.

But the total cost of shire borrowings has more than doubled to $5.9 million – mostly due to additional recreation centre costs.

Loan repayments for all shire borrowings this year will total $600,000, of which more than half will be for the recreation centre.

Ongoing annual shortfalls prompted auditors Moore Stephens to warn the council in June last year of a “significant adverse trend” in shire finances since 2016.

This year’s ratio shows a three-fold worsening of that trend with a budgeted operating surplus ratio of minus 34 per cent.

Last month’s council meeting adopted eight recomendations concerning various parts of the shire’s 2020-21 budget with a mostly unanimous 7-0 vote (Cr Ben Bell absent and one seat vacant).

The only dissenter was Cr Paula Greenway (pictured left at last year’s ground-breaking ceremnony for Toodyay’s new $14 recreation precinct) , who raised her hand against the final motion when Shire President Rosemary Madacsi asked councillors if there were any objections to adopt the budget as a whole, including financial statements, notes, supporting documents and schedules.

The recommendation was moved by Cr Phil Hart, who spoke briefly in favour of it and praised shire staff for putting a “huge amount of work” into preparing this year’s budget for adoption.

His motion was seconded by Cr Therese Chitty, who chose not to speak.

Cr Greenway remained silent when President Madacsi asked if there were any speakers against Cr Hart’s motion.

When her name was called by President Madacsi, Cr Greenway said “I don’t wish to speak”.

The motion was carried 6-1 with Cr Greenway voting against it.

She declined next day to respond to a Herald email when asked to explain publicly why she voted against the budget.

New Shire CEO Suzie Haslehurst was not involved in preparing this year’s budget, which the council adopted last month on only her second day at work.

She said it was a near break-even budget with virtually no surplus – “there’s no fat in it”.
“This will be the case for the next few years,” she said.

“We won’t have any ‘play money’ for big new things.

“Staff have been told to be vigilant about costs and we have to be very cautious about how we approach things.”

Ms Haslehurst said shire service levels had been reviewed and four positions were made redundant for a cost saving of about $600,000.

Budget papers show planned rates revenue of $6.3 million and a nominal surplus of $1.1 million, which includes grants, subsidies and contributions from external sources.

However, operating costs will exceed regular shire income by $2.6 million, largely due to recreation centre costs and large annual loan repayments that are set to continue for the next 20 years.

“We need to be very pro-active about obtaining new grant funding but don’t have sufficient financial reserves to provide matching funds,” she said.

“Our priorities this financial year will be roads, maintenance and upgrades, drainage and footpaths, and paying down loans.”

Ms Haslehurst said she expected construction work on Toodyay’s new recreation centre to be completed by the end of September and the new public swimming pool open in time for the coming summer season.

The shire has advertised for a “suitably qualified operator” to manage part or all of the new recreation precinct including the swimming pool, sports grounds and other facilities.
Tenders close at 2pm on Wednesday July 8.

Ongoing divisions also blocked an initial bid last month to secure an absolute majority of five votes to allow new Shire CEO Suzie Haslehurst to start her new job on June 22 instead of having to wait until mid-August.

The shire has lacked a full-time CEO since February, including during the recent virus lockdown, staff cuts and an emergency budget based on no increase in rates or fees and no extra charges for late payments.

Cr Brian Rayner (left), who nobody voted for in 2017, declined a Herald request to explain – with three other councillors unusually absent – why he didn’t want the new CEO to start earlier, saying it was “confidential”.

The three candidates seeking to fill former shire president Bill Manning’s seat say they all want change.

All three have professional qualifications and business skills – one is a former university business lecturer and shop owner, two have local farming experience, one is a former WA regional city administrator, and another provides financial advice to miners.

The winner is expected to break an impasse between four new councillors elected by all Toodyay voters last October and three longer-serving members who were re-elected two years earlier under a now abolished ward system that excluded most Toodyay voters.

The shire is also awaiting the outcome of a long-running WA Government inquiry into its operations and affairs over seven years.

A WA Local Government Department spokesperson said State officials would soon ask people named in the inquiry to respond to the findings before WA Local Government Minister David Templeman tables a final report in State Parliament.

Candidate April Ashley (right) posted on Facebook before last year’s elections: “I hope that sanity prevails and that the moment the new councillors take their seats, there will be no more CEO or President ‘issues’ and that the residents of 2J will be able to relax knowing that their rates will be fairly evaluated and spent wisely. Vote well folks.”

Ms Ashley – who has worked as a university business lecturer and operated small businesses, including a coffee shop and educational company – says she has no personal agenda, supports open and accountable government and that a vote for her in this month’s election will be a vote for transparency and integrity.

She said she had lectured in accounting, finance and management for 30 years at nearly all WA universities, private colleges and TAFEs and is a “positive thinker who believes in working together to achieve positive outcomes”.

“I have no personal agenda and if elected I will be your representative and your mouthpiece,” she said.

Rival candidate and Hoddys Well farmer Keith Boase (left) says “it has been disappointing to see continuing frictions within the council which is operating in a manner that causes harm to the local government and residents of the area”.

“I believe strong governance with the best interests of the residents of our shire can be achieved only by electing experienced people who will commit to providing sound decision-making without fear or favour,” Mr Boase said.

“I understand the commitment and workload involved to offer a new, independent voice to the council chamber that will bring vision and stability to restore balance in Toodyay.”

Mr Boase is a former Shire of Quairading landcare coordinator, former Agriculture Department Kalgoorlie acting district manager, former City of Kalgoorlie-Boulder environmental coordinator and manager of sustainability and waste services (including WA’s largest sewerage system outside Perth), and is currently Parks and Gardens Coordinator at the City of Swan.

The third candidate, Toodyay Central Volunteer Bushfire Brigade Captain Mick McKeown (right), says Toodyay is at a crossroads ‒ “this election provides our community with a chance to decide whether to continue with the divisions of the past or to change things for the better in the future”.

“We have significant challenges ahead and our council badly needs people who can analyse and understand complex laws, regulations and policies,” he said.

“I am not (and will not be) aligned with any group on the council and this will allow me to liaise closely with all my fellow councillors to achieve the best outcomes for the community of Toodyay.”

Mr McKeown – who is a leading member of Toodyay’s Friends of the Catholic Precinct – holds a Bachelor of Science Degree in Geology, a Masters Degree in Engineering Science and an Agricultural Management Diploma, is a Perth Royal Show award-winning local olive oil producer and is a financial analyst for Australian and overseas mining companies.

His nomination was publicly endorsed by Crs Therese Chitty and Paula Greenway who ‘liked’ it last month on the popular Let’s Talk Toodyay page on Facebook which has more than 4400 members.

Toodyay voters should start receiving candidates’ statements, ballot papers and voting instructions in reply-paid envelopes at their postal addresses early this month.

Anyone who misses out can call the WA Electoral Commission on 13 63 06.

The Toodyay Progress Association will host a free ‘Meet the Candidates’ public forum at the Toodyay Community Centre in Stirling Terrace (next to Alma Beard Medical Centre) at 7pm on Monday July 20.