March 28, 2014
South Burnett Regional Council has confirmed that rates will rise in the 2014-15 Budget but councillors are working to keep the increase to less than the 5 per cent which was tipped last year.
The Mayor and councillors have been meeting with council staff recently to draft the Budget and identify any possible savings.
“This is a hard task as again this year we have absorbed unexpected cuts to funding from the Federal and State governments,” Mayor Wayne Kratzmann said.
“In the Budget papers of last year we forecast an increase in general rates of ‘above 5 per cent’ knowing that our finances were stretched.
“Since that time two major shocks have occurred … the reduction in grant money and the effects of drought on our farmers and businesses.”
The Mayor said since the merger in 2008, Council has been working progressively every year to reduce its running costs.
It now has an operating budget lower than it was six years ago, despite inflation.
“This, in itself, is a remarkable achievement and one that I believe is unique in medium-sized rural and regional Queensland Councils.
“This has been achieved through good management of resources, reductions in staff, and improving business processes.
“My Council’s aim is get the general rate increase below the forecast 5 per cent, hence we are working hard to identify which services can be cut or reduced knowing full well that roads are our major priority.”
Finance Portfolio Spokesperson Cr Keith Campbell said he was optimistic a general rate increase would be below 5 per cent but said Council also needed to borrow money for bridges, water, and wastewater.
“Currently our water prices are well below those recommended by an external State Government-funded project. We are aware of this but will address this in a planned way over several years to avoid what is called price shock,” Cr Campbell said.
“Since January we have done a dozen different financial models with the aim of minimising the impact of any rate increase.
“We are committed to balancing our Budget and do not want to fall into a Budget position where we are reported to Parliament and placed on watch by the Auditor-General for being financially unsustainable.
“Some 16 councils were recently placed on watch and reported to Parliament for being in a poor financial position.”
The South Burnett Regional Council will bring down its Budget in June.
“The bottom line is our Budget must balance,” Mayor Kratzmann said.
