July 11, 2012
Most South Burnett ratepayers will be paying less than $4 a week extra over the coming year after the South Burnett Regional Council handed down its 2012-13 Budget today; and almost one in four will be paying an increase of less than $2 a week.
But in exchange for a 5.75 per cent increase in the general rate, residents will see a record $70 million spend on regional roads (up 20.5 per cent on last year).
Another $10.7 million will be spent on upgrading or replacing key water and waste water systems, many of which are 70 years old and rapidly approaching the end of their useful lives.
The Council will also spend $7.2 million upgrading or improving assets such as the Lake Boondoooma and Bjelke-Petersen Dam tourist parks, swimming pools, parks and gardens, and cemeteries.
And the SBRC will continue to support community groups, pensioners and those living in Council-owned accommodation with subsidies.
The Council has pared back more than $2.2 million from its costs in a Budget which Mayor Wayne Kratzmann described as a “back-to-basics” effort conducted against a background of major reductions in State and Federal Government funding, and the as-yet unknown impacts of the Carbon Tax.
The Mayor also pledged to undertake a full review of all Council operations over the next six months. The purpose of this would be to see if some services could be realigned to become more productive.
The Council would also conduct an audit of its real estate holdings to see if it has any surplus land that can be sold off to raise cash.
And to ease pressure on household budgets, rates notices would now be issued quarterly in August, November, February and May rather than six-monthly.
While this move will increase the Council’s costs, Cr Kratzmann said he felt quarterly invoices would help “ease the squeeze” on households living from one payday to the next by making Council bills smaller and more affordable.
The Mayor forecast likely rate rises of roughly the same amount over the coming two years but said this was better than the alternative, which was to hand down a smaller rise this year which would only defer a much bigger one to the future.
“In 2012 this Council is about building long-term capacity, financial sustainability and economic growth for the future prosperity of our community.”
The full text of South Burnett Mayor Wayne Kratzmann’s 2012-13 Budget Speech:
South Burnett Regional Council
2012-13 Budget Statement
presented by Mayor Wayne Kratzmann
The 2012/2013 Budget is built on two major cornerstones: Building for the Future and Back to Basics.
The framing of the Budget has presented this Council with an unparalled challenge, a balancing act between sustainable governance and an affordable rate increase.
Can I acknowledge the enormous work and research done by General Manager Gary Wall and his finance team and to my fellow Councillors and Executive staff who have all risen to the occasion and made decisions that are required for good governance.
To make monumental decisions that are not politically palatable but are financially correct for the future sustainability of our South Burnett Region, are decisions that are only made by people with the betterment of our community at heart and for our future generations, not decisions that benefit us as individuals.
For this, Councillors I applaud you.
General Rates And Roadworks
This Budget has been focused on achieving a surplus for this financial year whilst endeavouring to
deliver on the renewal of core infrastructure assets – Roads, Water and Sewerage.
General rates will increase by 5.75 per cent, an increase that would have been much larger had major operational cost cutting not been achieved.
I am proud to say that this Council has increased our roads budget by 20.5 per cent and will see approximately $70 million spent on our road network this financial year.
I acknowledge that there has been frustration within the community over the time taken to commence our flood restoration works, however our engineers have had to work through a complex – and at times erroneous – State and Federal system to achieve compliance.
The good news is that work has commenced with the first tender for $23.5 million let in June and a second
tender with work valued at approximately $20 million to be approved in September.
During the election campaign the state of our roads was clearly the number one priority raised by South Burnett residents and we will act on our promise to deliver.
Accordingly $22.275 million has been provided to maintain and renew our road network, which includes:
- $5.977 million on general maintenance
- $3.9 million on Main Roads and QRail funded projects
- Capital works program totalling $10.639 million and an additional $1 million for complementary works not covered by the flood restoration grants.
Water And Waste Water Infrastructure
A full assessment of our water and waste water infrastructure has also been undertaken. This assessment has identified that the majority of these assets are reaching the end of their useful life, some of which were installed over 70 years ago.
Not surprisingly these assets have deteriorated to a point where they are costing taxpayers an unsustainable amount of dollars for ongoing repairs.
As a result our Council is announcing a significant renewal and replacement program which will see the future infrastructure requirements of our region assured.
A sum of $10.7 million has been allocated for capital improvements to Water and Waste Water assets across the region:
- $1.696 million for water main replacement and upgrade
- $2.3 million to replace the rising main from Gordonbrook Dam project
- $2.37 million for water treatment plant upgrades
- $1.63 million for waste water replacement and upgrades
- $1.53 million for waste water treatment plant upgrade
Upgrading Council Assets
Whilst the focus has been on the key areas of roads, water and sewerage, Council’s other assets and operations have also been identified with a further $7.2 million allocated:
- $2.22 million on plant fleet replacement
- $1.42 million on information technology
- $527,000 tourist and caravan parks
- $425,000 swimming pools
- $585,000 parks and gardens including $250,000 for improvements to the development of
Murgon and Wondai townships - $225,000 on regional cemeteries including the restoration of the Taromeo Cemetery.
The rehabilitation of the Kingaroy Depot site in Pound Street has been deferred until next financial year due to the pressures on this budget.
However, $100,000 has been allocated to complete the current stage of decontamination of the site. A further $300,000 will need to be provided in 2013/2014 budget to finalise the rehabilitation by which time Council will have decided the best use for this site.
Impact Of The Carbon Tax
As mentioned, the formation of this Budget was extremely difficult with the costs of operations rising at a faster rate than our ability to raise revenue to cover these costs.
Projections have been made for the impact of the Carbon Tax and indications are that it will be equivalent to a 1 to 2 per cent increase in rates.
The flow-on from the Enterprise Bargaining Agreement signed in 2011 also impacts greatly on our overall costs. Whilst not begrudging our employees a pay rise, improvements in productivity must be obtained to negate the overall impact.
Review Of Council Operations
Stringent appraisal of our expenditure has been undertaken in an endeavour to keep rate increases within reasonable limits with $2.2 million being pruned from the proposed budget.
Legislation requires Council to prepare and adopt a budget for this year and the two subsequent financial years. In reviewing our forward projections, it was clearly identified that in order to maintain future year increases below 6 per cent Council will need to review and realign the services we currently provide.
Today we make a commitment to undertake a full review of all Council operations over the next six months and to realign services where necessary, plus a comprehensive report will be tabled of all Council land that is available for sale.
This report will enable Council to devise a plan to utilise Council funds for the development, expansion and future direction of Economic Development in our region.
Other Considerations In Framing This Year’s Budget
Council acknowledges the difficulty ratepayers face in making ends meet as we the Council also are faced with those same cost increases.
I speak for all of us when I say that the impact of the rate increases on our community prompted many hours of strenuous debate amongst Councillors when determining the Budget.
Despite the significant cuts to operating expenditure, Council faced a deficit unless additional revenue was raised. User fees and charges have been reviewed and will be progressively monitored over the next three budgets to closer reflect the actual cost of providing the service.
We are now providing a new and positive approach from all aspects of Council’s operations to ensure our rate payers, developers and constituents are given the best possible service with a view to obtaining a positive outcome.
Council was faced with an easy option; a smaller rate rise this year and worry about increases next year or sometime in the future. That would have been irresponsible and resulted in large increases in future budgets.
Those decisions have been made before, however in 2012 this Council is about building long term capacity, financial sustainability and economic growth for the future prosperity of our community.
Accordingly when formulating this budget Council has endeavoured to keep the rate increase well below the level of cost increases being experienced in our day to day operations but at a level to maintain a balanced Budget.
Overall rate revenue has increased by $2.9 million, however growth in Council’s rate base slowed last year to 0.8 per cent and it is anticipated to remain very low for the coming financial year.
Impact On Rate Payers
The impact on individual rate payers will vary across the region as a result of the variations in new valuations provided earlier this year by the State Government, impacts of averaging the last three years’ valuations and service charges in some categories.
The impact of these decisions has been quite varied across the region, which will see 78 per cent of rate payers receiving an overall increase of less than $4 per week, 55 per cent less than $3 per week and 38 per cent less than $2 per week.
A full schedule of various rates and charges is detailed in the budget papers.
Support For Pensioners And Community Groups
Can I say that this Council has worked hard to achieve a Budget which is accountable, sustainable and deliverable.
There has not been one decision where the impact on our rate payers has not been the major consideration in the process.
With this in mind Council will continue to grant eligible pensioners a $100 rebate off their rates and charges in addition to the $200 provided by the State Government.
This Council is also unified in its endorsement of the work done by our volunteers.
Council will grant over $141,000 worth of concessions to our organisations, including the following remissions:
- QCWA – $7928
- Scouts and Guides – $10,092
- Kindergartens, Child care and senior citizens and other welfare organisations – $27,651
- Aged Care facilities – $10,118
- Masonic Lodges – $1950
- Community owned Halls – $3075
- Museums – $3520
- Showgrounds and Race clubs – $11,264
- Sporting Clubs – $65,488
Introduction Of Quarterly Billing
Council has also this year for the first time been truly appreciative of the tough economic conditions that currently prevail, and with this in mind have introduced quarterly rate notices to assist households and business with their budgets.
These notices will be issued in August, November, February and May with a discount of 10 per cent being applied to each notice if paid within 30 days.
In closing, can I once again thank all staff for their perseverance and dedication to this budget and to all Councillors for their willingness under an extremely difficult environment to work as a team for the long term sustainability of our region.
I am honoured and pleased to present the South Burnett Regional Council Budget for 2012/2013.
