Cassowary Coast Regional Council

With the election behind us and the state government out of caretaker mode I can advise residents that council has lodged funding applications for upgrading the Innisfail Sewerage Treatment Plant and the Innisfail Water Treatment Plant and for construction of a new clean water delivery main from the Innisfail Water Treatment Plant to the Church Street Reservoir distribution point.

The total cost is $55 million.

The Cardwell Sewerage program application was lodged many months ago and is being progressed.

The Multi Function Centre in Tully has been the subject of an application to the federal government, under their recent infrastructure stimulus programs.

The other major project that is going to be advanced is the Jubilee Bridge in Innisfail. The state election drew similar promises of funding from both major sides of politics and federal funding of the balance is expected, under the ‘no cost to ratepayers ‘ agenda, promoted by the state government..

During the last four months council has been working on the financial model that underpins the recent applications for funding.

In a general sense the model presents a very bleak financial future for the Cassowary Coast Regional Council, particularly in the short term, unless the state government provides council with additional financial support. This is largely a result of the significant infrastructure backlog inherited by council, particularly in the former Johnstone Shire Council area, with a number of major infrastructure projects having to be undertaken in the short term.

This comes as no surprise as both the Orion Reports and the de Chastel Report said the same things.

The unfortunate outcome is that council will not be able to afford these infrastructure projects based on existing subsidy levels and standard loan terms.

The submission to the regional manager of the Department of Local Government, Sport & Recreation requests the opportunity to work with the Department and the Queensland Treasury Corporation, to develop a Financial Support Package. Our completed financial model will be used to ensure future financial sustainability.

The involvement of the Queensland Treasury Corporation is critical and assistance will be requested with:

• Higher levels of subsidy
• Additional grants
• Longer term loans
• Interest free loans

Council cannot expect additional assistance without itself taking on greater financial responsibility, including higher levels of debt. There will also be obligations to review its operations in order to reduce operating expenditure, through efficiency gains and service reviews. This will be facilitated through the Service Review process, the framework for which has been established. The first review is scheduled to occur in the near future, and reviews will become an ongoing process.

The state government has consistently said to the Cassowary Coast Regional Council ‘wear some of the pain yourselves’ – and we have certainly done that; ‘put your house in order’- meaning among other things, conduct your business professionally – which we are doing; ‘reform your structures and develop a business plan – completed; ‘prepare a financial model’ – completed and ‘put your case forward’ – which we are now doing.

Council will not enter into any debt arrangements other than for long term assets and within our capacity to service and repay.