LGAT releases cost index

The Local Government Association of Tasmania has released its annual Council Cost Index, a tool used to assist the state’s councils approrpriately set rates and reflect the cost of council business in the state.

LGAT CEO, Dr Katrena Stephenson, said that the tool will prove invaluable for councils in providing cost effective services for their local communities.

“It is important for councils to understand the nature of their business and what the true cost movements have been over a period,” Dr Stephenson said.

The Council Cost Index (CCI) differs from the Consumer Price Index in that it provides an indication of how council expenditure might change over a time period where spending 'behaviour' remains constant.

“While the Consumer Price Index (CPI) is a useful guide to understand shifts in organisational costs and the cost of consumables such as groceries for the average ratepayer, the CCI enables councils to consider the specific nature and costs of their services they provide” Dr Stephenson explained.

“Council business impacts broadly across municipalities, extending from community services to activities related to general construction of roads, bridges, parks and community facilities as well as ongoing maintenance.” Dr Stephenson said

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