May 21, 2013
Local Councils throughout Queensland have been told by the State and Federal governments that they will need to look after their own revenue raising, South Burnett Mayor Wayne Kratzmann said today.
“We have been advised that councils can’t rely on grants because the State Government doesn’t have the money to keep giving to local councils,” he said.
“There is significant debt across the State and we have been advised by the State Government that we need to rationalise our assets.”
Mayor Kratzmann said the South Burnett Regional Council is in a better position than some local councils with 62 per cent of rural and regional councils in a deficit.
“Local governments across the State have massive debt. We don’t want to end up in the same place. We have been advised we may have to cut services or look at ways to raise revenue,” he said.
Council says research has shown that to be sustainable, a council requires a minimum of 40,000 people and a rate base of 22,000.
However Deputy Mayor Keith Campbell said the South Burnett had just under 18,000 ratepayers.
“We need to ensure we make smart long-term decisions and this isn’t always easy to do. Smaller councils will struggle even more than South Burnett,” Cr Campbell said.
“A lot of local governments have based a budget on the assumption that they will have a growth rate and that the growth rate will fund the debt. Research has shown that in 20 years 70 per cent of people will live in a city, which means our current growth rate of 1 per cent may decrease.
“We have to make a decision based on the fact that the population that we have currently may be where it stays.”
Mayor Kratzmann said traditionally councillors throughout Queensland have left hard decisions for the next elected Council.
“This council is making the hard decisions now to ensure we are sustainable beyond the next election and for years to come.”
