The CEO of Pyrenees Shire has said the council's finances remain in reasonable shape despite a media report to the contrary.
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Jim Nolan, who was appointed CEO of the rural shire in 2014, put out a statement following an article published last week by the Herald Sun.
In the report, the rural council was described as being in danger of collapse. It also cited an Auditor General's report, which suggested Pyrenees Shire was among several that were not financially sustainable.
Mr Nolan said: "Despite the claim by the Herald Sun, the Pyrenees Shire Council is not on the brink of collapse."
Pyrenees Shire was cited by the Melbourne-based paper as one of nine rural councils deemed to be struggling "after years of decreasing population levels and diving revenue".
Mr Nolan acknowledged an Auditor General report highlighting the sustainability challenges faced by rural councils.
"This position is based on Council's limited capacity to raise revenue to meet service needs and being responsible for a large asset base, in particular road and bridges requiring considerable maintenance and renewal," he said.
He added that the shire relied heavily on state and commonwealth grants, and the report highlighted the importance of taking into account challenges faced by small rural councils.
"Despite the reliance on grants, Pyrenees remains debt free and is planning for sustainable long term growth," he said.
The population of Pyrenees Shire - which includes the towns of Beaufort and Avoca - is around 7,000 with around 30 per cent of its workforce in agriculture.
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Parliamentary inquiry:
Pyrenees Shire response in full
Despite the claim by the Herald Sun (dated 30.4.2020), the Pyrenees Shire Council is not on the brink of collapse. The recent Auditor General's report identified that several small rural councils, including Pyrenees are financially unsustainable.
This position is based on Council's limited capacity to raise revenue to meet service needs and being responsible for a large asset base, in particular road and bridges requiring considerable maintenance and renewal.
Rate revenue makes up just 40 per cent of Council's total revenue, and like other small rural councils, Pyrenees relies heavily on State and Commonwealth grants. The Auditor General's report further highlights the need for the distribution of grant funds to have regard to the factors which disadvantage small rural councils. Despite the reliance on grants, Pyrenees remains debt free and is planning for sustainable long term growth.
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