Mayor’s View – 21st August, 2008
The budget and annual report are the most important local government documents produced each year.In framing the 2008-2009 budget, the first step was to recognize that rates are already high, but to correct for the past in one year was not realistic or practicable.
The second step was to set out to produce a balanced budget, showing rate payers and the state government that council is acting appropriately and responsibly. Amongst other things this is a pre-requisite for further, necessary assistance from the state government.
The third step was to cut expenditure to match income. From the first draft to the final document we cut some $5 million in operational expenditure. This was not easy, as council wanted to maintain its level of service, but it did give the opportunity to re-deploy employees for capital works.
The task of integrating the very diverse rating systems in use in the north and south of the region will take most if not all of this council’s first 4 year term.
For this first regional budget we used a default net rate increase of 7%, after allowing for a common due date discount rate.
Rural property owners will see the beginnings of integrating the north and south rating systems, primarily affecting low intensity (grazing) areas in the south. However the rates for these blocks will still be significantly less than the single rural rate in the north.
There have been increases greater than the 7% for some low rated commercial properties. The percentage increases are higher, but on a low base, so the actual dollar increases are not large.
The other area where higher increases have occurred is for some multiple dwellings, where we are beginning to integrate the relevant categories in the north and south.
There have been changes to the format of water charges. The north will now have a two part tariff – connection and consumption – based on the size of the water meter connected to the property. This system is very common throughout Queensland.
The controversial additional $370 rural water charge in the north has been abolished.
Another area where rate payers will notice a difference is with discounts. A 15% due date payment discount on general rates will apply throughout the region. This is a compromise between the two systems operating previously and will have no effect on net rates as the amounts levied have been adjusted accordingly.
Overall the budget delivers a surplus of $24,000 after depreciation of $12.3 million.
Capital expenditure totals $29.1 million, funded from capital grants, depreciation and reserves. The current year income available for capital works is only $1.2 million. Our constrained financial position means that we remain dependant on grants and general economic growth in our region.
The major capital expenditure items throughout the region are:-
- Improvements to water supplies $4.7 million
- Sewerage works and improvements $5.4 million
- Waste management $2.5 million
- Roadworks ( including Maccarones Bridge) $7.24 million
Other items include $3.2 million to complete the Shire Hall in Innisfail, including offices in the basement; $180,000 to complete the Cardwell Museum and Library Complex; $350,000 towards the Tully Multi Purpose Centre; $150,000 for footpaths / cycle ways along Cassowary Drive, Mission Beach and $315,000 for two SES buildings.
Our future is being secured by careful financial management by council and we understand and appreciate the hardship felt by many ratepayers. The task ahead remains considerable, but with capital works at the current level, repeated in future budgets and with continuing state government subsidies, we will see the Cassowary Coast established on a sound footing.