July 25, 2014
South Burnett Mayor Wayne Kratzmann delivered the Council’s 2014-15 Budget this morning.
The headline numbers of this year’s Budget are an increase in the general rate of 2.75 per cent; a forecast general rate increase of the same amount in 2015-16; an overall increase (including sewerage, water and waste collection charges) of 4.93 per cent, which most rural residents will escape; and a projected surplus of $661,677.
The Mayor said the Budget had been framed against a background of declining Federal and State Government support for local government, noting that 20 years ago most councils had to raise 50 per cent of their funding from ratepayers, but now have to raise almost 80 per cent this way.
He also expressed anger at the loss of $1.8 million in Federal Financial Assistance Grants since 2012.
But he extended his appreciation to the State Government for contributing $10 million towards the Kingaroy Wastewater Treatment Plant project, and continuing to offer the $200 subsidy to pensioners.
The full text of his Budget speech:
South Burnett Regional Council 2014-15 Budget Statement
Presented by Mayor Wayne Kratzmann
Councillors, it is with great pride that I present the 2014/15 South Burnett Regional Council Budget for adoption.
Can I place on record the huge workload that has been undertaken by our staff led by CEO Ken McLoughlin and General Manager of Finance, Gary Wall and his team to help me prepare this Budget for our community.
The Local Government Act states that the Budget must be prepared by the Mayor and delivered to Councillors at least two weeks before the statutory Budget meeting.
This legislative requirement was met, but unlike many Local Government Budgets across Queensland, the document’s contents were mostly known by the Councillors of the South Burnett Regional Council prior to their official receival.
I pay special gratitude to our Deputy Mayor Keith Campbell who has worked with me and given his advice – whether asked for or not – on several occasions since negotiations began some six months ago.
And to the rest of our team, a diligent band of committed and dedicated Councillors, can I simply say: “thank you!”
General Principles
This is a budget put together by a team striving to deliver an economic stimulus to our region whilst keeping increases to a minimum.
The external forces that affect this document ares at times overwhelming as we deal with cost-cutting from both Federal and State Governments, the fury of Mother Nature and the difficulty of being hamstrung by legislation and regulation.
Despite all of this, the Budget is a remarkable achievement accomplished by teamwork, diligence and care for our community.
It is based on three principles:
- To maintain a modest surplus in organisational operations
- To deliver projects to make the South Burnett an even better place to live, and…
- To keep a general rate rise to a minimum
We have achieved all three whilst converting the strategies and initiatives contained in Council’s Corporate and Operational Plans into financial terms to ensure that there are sufficient resources for their achievement while focusing on financial sustainability.
Declining Government Assistance
I make the following point strongly: the continual reduction in Federal Grants, in particular the Federal Financial Assistance Grant, has meant that Council is relying more and more on its own revenue sources to sustain its operations.
To that end Council now funds 79 per cent of its revenue from our own sources compared to 61 per cent prior to amalgamation and around 50 per cent 20 years ago.
As of today, we are receiving $1.8 million less in our share of the “taxation pie” compared to the indexed amount we would have expected to receive when this Council was elected in 2012.
Despite this:
- The General Rate rise for 2014/15 will be 2.75 per cent
- Our projected surplus will be $661,677 which will cover unforeseen shocks that may occur during the year
- The general rate increase for the following year 2015-16 is forecast to also be 2.75 per cent
- The overall rate revenue increase including all services such as water, sewerage and waste collection is 4.93 per cent
Taken into context and including the largest single project ever undertaken by Council ie the Kingaroy Wastewater Treatment Plant estimated to cost in the vicinity of $24 million alone, this is a major achievement.
And it has been achieved whilst retaining a rate discount of 10 per cent, unlike some other Councils who have reduced the discount, and continuing to support our pensioners by way of a $200 rebate.
This Budget recognises the State Government’s continuation of a matching pensioner rebate of $200 and their generosity of a $10 million grant for the Wastewater Project.
Community Concerns
This Council has also withstood the pressure to reduce rate remissions and grants to our community organisations, which amounts to over $327,000.
These concessions will continue in 2014-15 due to the commitment and desire of the six Councillors I address today, who are the community’s best advocates.
The general rate rise of 2.75 per cent has been due in no small part to Council’s realisation and empathy with our primary producers who have endured horrific seasonal conditions in recent times.
For the first time in the history of this Council, we have taken the unprecedented step of reducing the waste collection costs of small business by $96 per 240 litre bin. This charge is now more consistent with the residential charge.
Council’s workforce will be maintained at its current level with no job losses, however productivity increases will continue to be pursued.
Our workforce puts approximately $560,000 back into our local economy each fortnight.
Add to this Council’s “Buy Local” policy and we are a major contributor to our regional economy and should be recognised to the same extent as other large employers.
Despite keeping the rate increase to the lowest since amalgamation, Council has spent weeks on developing a Capital and Operational Works program that will continue to position the South Burnett as a desirable destination in which to work and reside.
Major Projects
As stated previously, this Budget includes the biggest single project ever embarked on by the South Burnett Regional Council.
The $24 million Kingaroy Wastewater Treatment Plant will accommodate growth in Kingaroy well into the future whilst guaranteeing we are environmentally responsible.
The ongoing benefits of this project will be realised in the future from an economic rationale and the opportunities for sport and recreation and community enhancement will be explored.
In addition to this major project, roads remain the focus of this Budget.
Roadworks
We will continue to build on the $100 million plus rehabilitation of our roads that has been undertaken over the last three years.
For the first time since amalgamation, Council has budgeted $6 million solely for road maintenance. This will be predominately spent on rural roads to ensure their trafficability and safety.
103 Council roads have been identified for resealing, spread from Benarkin to Murgon and all areas in between.
$900,000 has been allocated to complete the streetscape project in Nanango.
$4.2 million will be spent on the replacement of two major bridges – Sunday Creek Bridge on the Gayndah Hivesville Road, and the Stuart River Bridge on the Kumbia Brooklands Road. The State Government is also contributing $960,000 towards these replacements.
- Further sealing will be carried out on Ironpot Road
- An upgrade of the Fisher/Moore Street intersection will also be undertaken
- Pavement repairs and an upgrade of Markwell Street east of Kingaroy Street will be done
- We have listened to our constituents and will spend $300,000 on Brights Road, Nanango, and the sealing of Logans Road has been earmarked to commence next financial year
- $1.2 million will be carried out on pavement rehabilitation of Kumbia Road
- Levers Road in Murgon will be realigned and rebuilt
- Drainage and culvert upgrades will be undertaken on Clarke & Swendson Road in Kingaroy
- Major upgrades will also occur on Minmore Road and Semgreens Road
- Venman Street in Kingaroy will have pavement rehabilitation carried out and the kerb and channelling replaced
- A full geotechnical assessment has been budgeted for to investigate the options regarding Campbells Bridge at Silverleaf
- Dalby Street in Nanango will be constructed to allow for the development of Heritage Community Lodge in conjunction with CTC, Heritage Community Bank, the State Government and Council
- $300,000 has been allocated to upgrade and refurbish the Glendon Street Car Park in Kingaroy to begin rejuvenating the Kingaroy CBD
- Major expenditure has been allowed to provide a safe footpath access from the town centre in Wondai to the Sportsground
- Footpaths and bikeways will also be built and/or upgraded in Proston, Murgon, Nanango and Kingaroy
Blackbutt Upgrades
This Budget also recognises that the township of Blackbutt does not currently have the standard of pavement coverage, drainage, kerb and channelling as do other major centres.
This Council made a commitment to the people of Blackbutt that this will be rectified and we are true to our word.
I am proud to announce today that $3 million has been allocated to upgrade drainage, kerb and channelling and other associated works in the Blackbutt township.
This work, after planning and consultation, is expected to commence in April/May next year and continue into 2015/16.
Other Project Spending
In total $42.56 million will be expended on Road Infrastructure, $17.89 million on Wastewater Assets and $6.07 million on Water Supply.
$2.365 million will be spent on the operation of our 17 refuse tips and transfer stations throughout our region.
I am proud to announce that $202,000 has been allocated for the new Hivesville Transfer Station, and a further $685,000 on Transfer Station Upgrades including Maidenwell, Cloyna, Brigooda and Home Creek.
Plant & Fleet will see the replacement of one grader, two rollers, two loaders, one backhoe, four trucks and some smaller items of plant, however Council is certainly doing everything we can to minimise costs and maintaining plant for a longer length of time.
IT will see expenditure of $1.192 million including the upgrading of our 2-way radio systems and the finalisation of our Disaster Recovery set up.
Spending On Community Assets
The ongoing expenditure on our vast array of recreational facilities, halls and swimming pools is an enormous cost and much has been said about these and the costs associated with the maintenance and the upgrades.
Whilst they are a drain on our financial resources, I think it is time both Council and our community take a minute to reflect on actually how fortunate we are to have all these facilities.
Yes, they cost us money by way of funded depreciation and then with capital upgrades and the never-ending maintenance costs.
But to be honest, I am proud to have a pool in Blackbutt, a Regional Art Gallery as good as Wondai’s, the PCYC in Murgon, the magnificent tourist facilities at Bjelke-Petersen Dam and Lake Boondooma near Proston, one of the best regional airports in Australia at Kingaroy and a Visitor Information Centre in Nanango that is second to none.
It’s time to embrace what we have and it’s this Council’s obligation to fund them to keep them at an appropriate standard for our constituents and many visitors to the region.
With that in mind today I announce some of the projects to be carried out this financial year:
- Aerodromes – New weather forecasting station at Kingaroy
- Art Galleries – Replacement of gutters and box drain at Wondai Art Gallery
- Swimming Pools – A complete refurbishment of the amenities at the Murgon Pool including new change rooms and kiosk. along with upgrades to the South Burnett Aquatic Centre in Nanango, Kingaroy toddlers and learn to swim pool, and repairs to the Wondai Pool
- Tourist Facilities – As part of our Economic Stimulus Package, new cabins will be built at both Lake Boondooma and Bjelke-Petersen Dam
- New entry signs to the South Burnett will be erected from Blackbutt to Murgon and individual towns and village signage will be refurbished
- Sport & Recreation – The facilities at the Wondai Sportsground will be substantially upgraded, the grandstand at the Murgon Showgrounds upgraded, the roof of the PCYC will be replaced and a utility building will be transferred to the Wheatlands State School as a joint initiative with the school’s P&C
- Halls – New tables and chairs will be provided for the Nanango Cultural Centre and upgrades will occur at the Murgon, Wondai and Kingaroy Halls. Structural repairs have also been budgeted for the Boondooma Community Hall
- Other items of note include a new amenities block for the Wondai Caravan Park, replacement of the toilet block at the Wondai Cemetery, surgery equipment upgrades for the South Burnett Community Foundation Hospital and the installation of air conditioning to the Brighthaven Units in Nanango
Summary
The aforementioned works are just a snapshot of this year’s Budget.
It is a budget based on strengthening our road and infrastructure network, setting up Kingaroy as a major regional centre for the future, bringing Blackbutt up to the standard of our other towns, securing Murgon’s recreational facilities, upgrading Wondai’s infrastructure and finalising Nanango’s CBD revitalisation.
This is all done on the premise that our primary producers are looked after as well as we possibly can with the smallest general rate rise in the history of this Council.
This Budget is a culmination of teamwork, consultation, research and hard work. It would not have been achievable without the support of our Councillors and staff and community consultation.
The overriding theme of preparing the budget was to keep rate increases down to the lowest level whilst maintaining a small surplus and a program of works spread equally across our large South Burnett region.
All this is delivered to the people of the South Burnett today, and I commend the 2014/15 Budget to Council for adoption.
