Cars would cost council $47,670
Much has been said in the local press in relation to councils proposal to provide cars for councillors.
It has been stated that council would make $2088 per vehicle if council were allowed to purchase these vehicles for councillors.
Whilst this may be true the actual costs, which the proponents of such a move do not fully disclose, gives a far different scenario.
Councils own figures have the cost of running a car at around $8109 per annum. Council normally holds cars for two years which takes this cost to $16,218.
From this amount we take the so called "profit" of $2088 on the purchase price and the figure is $14,130 divide this by two (for the two years) and we get in round figures a cost of $7065 per vehicle.
To be even more accurate, currently according to council figures, the total for the travel allowance for the nine councillors amounts to $8900 per year or roughly an average of $990 per councillor.
So from the cost of the vehicle this amount should be deducted, as it would not have to be paid if the cars were provided, so this gives a figure of $6075 as the cost per vehicle.
There is one further cost off set to be made from this figure: currently the private contribution component from the Mayor amounts to $15 per week or $780 per annum. This likewise should be deducted from the cost as outline above.
This then would bring the grand total to $5295 as the true cost to the ratepayers for each car, not a saving of $2088 as some would have the ratepayers believe.
Multiply this cost by nine cars and the total costs come out at $47,670.
Craig Munnings, The Bays Progress Association