ESCOSA commends Council progress

The Essential Services Commission of South Australia (ESCOSA) recently handed down its Local Government Advice for Berri Barmera Council, stating that Council’s new strategic approach “will support the Council’s return to a sustainable operating performance and effective asset management”.

Berri Barmera Council chief executive officer Tim Pfeiffer said while the report found the organisation to be unsustainable due to historical financial and asset management issues, it also highlighted Council’s path forward.

“The really pleasing thing about this report is that it underlined just how much work has been undertaken by staff and elected members since early 2024,” he said.

“The report acknowledged that a new executive team, with support of elected members, has been progressively updating asset and financial management plans, with a new strategic approach.

“It states that this new approach will support the Council’s return to a sustainable operating performance and effective asset management, which is really positive.”

ESCOSA is in its final year of its four-year local government advice cycle, with reports given on neighbouring councils Renmark Paringa and Loxton Waikerie last year.

The aim of the ESOCSA advice is to provide independent, risk-based advice to assist councils when making long-term financial and investment decisions for the benefit of ratepayers.

The report stated that the current momentum created by the management team and elected members will need to be maintained to “achieve its goals to become financially sustainable and meet the community’s needs”.

"(Berri Barmera Council) has developed a new strategic approach to its financial and asset management that, in the Commission’s view, will support the Council’s return to a sustainable operating performance and effective asset management,” the report stated.

"The Commission commends the work that the Council is doing to improve its financial and asset management."

Council has introduced new practices to strengthen strategic planning and asset management. These include a risk-based approach to asset life and renewal, a stronger focus on renewal and replacement, improved procurement and project sequencing, investment in skilled staff and stronger governance and oversight.

As per the report’s recommendations, Council will closely monitor and report on operating expenses, update its Long-Term Financial Plan as required to support a return to operating surplus and regularly update Asset Management Plans to ensure asset values and useful lives remain accurate and compliant with accounting standards.

In addition, Council will closely monitor asset condition and service levels, prioritise value for money in procurement, carefully control capital expenditure and review asset renewal and depreciation to ensure spending is necessary, efficient and sustainable.