FAGS we cannot give up, costing us $784,000 over three years
A FEDERAL Government decision to pause indexation of grants it gives local government will cost the Clarence Valley $784,000 over the next three years.
To put that in perspective, the amount is more money than the Clarence Valley Council will raise with its pegged rate increase for 2014/15.
On Tuesday the council adopted a report noting the importance the council placed on the Financial Assistance Grants (FAGS) it received from the Commonwealth totalling $10.256 million and that it correctly identify all Commonwealth grant funding in its publications.
The report came to council in response to a letter from Local Government NSW requesting it join other councils in Australia in a campaign against the pause in indexation.
The pause was a measure in the 2014/15 Federal Budget aimed at saving $925 million over four years.
To achieve the saving the government would not index payments to the CPI from 2014/15 to 2017/18.
Also on Tuesday Federal member for Page Kevin Hogan announced the latest instalment of the grant payment, $2,563,851, to the council.
For the council's director - corporate, Ashley Lindsay, it was another example of the difficulties councils face securing funding for their works programs.
Mr Lindsay will delve more into this issue in tomorrow's Examiner.