Technofreak:

 

frankv:

 

What should you do if you look at how you're operating and find that you have long ago trimmed all the fat off, and indeed cut some corners, and now have to increase rates by 19.9% just to cover the services that you are legally required to provide?

 

 

Continual increases at or above the rate of inflation, which is what has been happening indicates to me there has been no fat cut off or corners cut. It indicates the exact opposite has been happening.

 

I don't think that inference is correct. If there *is* fat in the system, then lower rates are possible for a time, or perhaps even a decrease. However, when the fat is eventually gone, a larger-than-inflation increase will be required, after which any increases in costs must be passed on immediately. If corners have been cut in the past for short-term gain or cost savings, the true costs of that will become apparent much later. I'm thinking here of the underfunding of three waters by councils for decades.

Roading is another example.