(Photo: SBRC)
April 1, 2015
A decision to borrow $3 million to end flooding problems in Blackbutt’s CBD provoked debate at Wednesday’s South Burnett Regional Council meeting.
Cr Ros Heit and Cr Damien Tessmann both spoke against the proposal, which forms part of a $7.6 million loan package from the Queensland Treasury Corporation that also includes $2.1 million for bridges, $2 million for Kingaroy’s water system and $500,000 for upgrades to the region’s waste transfer stations.
A loan of $2.1384 million for Memerambi Estate’s road and drainage works was deferred.
Cr Heit opened the debate by saying while she agreed there were many issues in Blackbutt that needed to be addressed, there were many other issues in the region that also needed attention.
“The news is full of the problems that the Federal and State Governments have got themselves into with excessive debt,” Cr Heit said.
“The SBRC is not at that stage yet, but everyone knows we have numerous facilities including bridges, swimming pools and town halls that were all built in the 1950s and 1960s and need major expenditure to update or replace.
“In our future planning we’re looking at a $9 million pipeline to Nanango because it is vital that town has a guaranteed, reliable water supply.
“Murgon’s water and waste water treatment plants will both need major refurbishments in the next few years, too, and we know we will have to borrow more money in future for essential and major infrastructure for this region.”
Cr Heit said the argument that Blackbutt and Benarkin had been neglected by the former Nanango Shire Council might be true, but that had not been the case since amalgamation.
“Extensive work has been done on Railway Road, Franks Road and Crumpton Drive,” Cr Heit said.
“We have sealed Langtons Road and Douglas Street, created a new road in two places at Pine Street, and undertaken major work on Coulson Street and the Blackbutt-Crows Nest Road. Blackbutt has new toilet facilities in Les Muller Park, and also received a new Christmas Tree last December.
“In the last two years we have spent well over a million dollars in the Blackbutt-Benarkin area and another $1 million is in our capital works budget in the next three years to widen Franks Road and seal Scott Street.
“This proposal to borrow $3 million for Blackbutt town development is equivalent to a 1 per cent rate rise for every ratepayer in the South Burnett. We will be repaying $240,000 in principal and interest each year for the next 20 years.”
Cr Heit said the total interest on the loan would amount to $1.6 million.
“I reiterate that I’m in favour of improving Blackbutt’s roads, as I am for all of our region’s road network,” Cr Heit said.
But she said she thought it would be better to defer the project for a few years so it could be funded without borrowing.
Cr Damien Tessmann agreed.
“If a 1 per cent increase in rates generates $240,000 and this financial year we delivered a 2.75 per cent increase, this borrowing represents around 45 per cent of the rate increase for this year,” he said.
“We have worked diligently to put this Council on a strong financial footing from day one in order to get the favourable report we got from the Queensland Treasury Corporation just recently.
“And it is true we can afford to borrow this amount.
“But in an era of droughts and floods, a high Australian dollar and online retailers affecting businesses that pay commercial rates to Council, are we really in a position to add an extra $240,000 to our annual interest expenditure?”
Cr Tessmann said he was also concerned the Blackbutt project had not been costed out in detail, and thought it would be more prudent to work out the exact costs before drawing down money for the project.
“Councillors, I urge you consider where we have come from,” he said. “We need to stand firm on our commitment to good economic management.”
In the end, the motion to draw down the $7.6 million loan – including $3 million for kerbing and drainage work in Blackbutt – was passed 5 to 2, with Crs Heit and Tessmann opposed.
The projected borrowings were included in Council’s 2014-15 Budget.
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