The Special Rate Variation and impending rate rise, has placed the spotlight on the Bellingen Shire Council’s (BSC) investment fund and cash reserve.
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Members of the community have questioned why a rate rise is needed when the BSC has already large funds stored away.
The Courier Sun has been advised that the BSC is not legally required to hold a minimum amount in reserves, however, there is legislative requirements relating to how council funds are held in reserves and are subsequently managed.
Mr Mark Troy, BSC Mayor, said in a statement: “Under the NSW Local Government Act 1993 Council’s cash funds are held in Externally Restricted Reserves and Internally Restricted Reserves.
“Externally Restricted Reserves include funds raised for water, sewerage, domestic waste, Special Roads Levy, Environmental Levy, Section 94 Contributions etc. and are only to be used for the purpose they were raised.
“Internally Restricted Reserves include funds held under resolution of Council for employee leave entitlements, plant and vehicle replacement etc.
“These funds are only to be used for the purpose under which they were resolved by council. The 2013 financial year financial reports Note 6 show that Externally Restricted Reserves amount to $25.900m and Internally Restricted Reserves amount to $2.993m."
