Strategic Priorities: Debt and Financial Management
A plain-English look at what our strategic plan says — and what our decisions are actually doing.
Council Affairs — Commentary
Published 11 May 2026
The strategic plan commitment
Our current strategic plan includes a clear commitment to addressing council debt. This priority was introduced during the final stages of the plan's development, at the time of my early involvement in council. As the plan was already nearing completion, there was limited opportunity to influence or refine this inclusion.
The presence of debt within the strategic plan signals an obligation for council to actively manage and reduce it.
What's actually happening
In practice, recent decisions have placed greater emphasis on reducing rates rather than addressing debt in a meaningful way.
While debt and rates are interconnected, they represent distinct financial considerations. Reducing debt typically requires increased revenue — often through rates — or disciplined financial management over time.
The current approach of reducing rates while simultaneously cutting services and funding has made it increasingly difficult to achieve the debt reduction targets outlined in the plan.
The key question
Why maintain debt as a strategic priority if it is not being treated as such in decision-making? Without alignment between strategy and action, this objective risks becoming ineffective — a commitment in name only.
Where accountability sits
It is important to be clear about accountability. This misalignment is a result of decisions made by Elected Members, not council staff.
- ✓Staff operate within the direction and priorities set by the elected body
- ✓Staff implement the policies and strategies they are given
- ✓Responsibility for setting and adhering to strategic priorities rests with those elected to govern
The fundamentals of financial management
Borrowing creates an obligation to repay both principal and interest over time. Sustainable debt reduction requires consistent and deliberate effort, supported by realistic financial planning.
A clear, balanced approach is needed to ensure that council decisions align with stated strategic priorities, and that long-term financial sustainability is properly addressed.
Have a view on this?
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