June 29, 2015
South Burnett ratepayers will face a 2.75 per cent rate rise from July 1 following the handing down of Council’s 2015-2016 Budget by Mayor Wayne Kratzmann this morning.
The figure is close to increases levied by Toowoomba Regional Council (3 per cent) and Gympie Regional Council (2.67 per cent) in their Budgets released earlier this month.
This is the second year in a row the SBRC has handed down a CPI rate increase.
Mayor Kratzmann said this year’s Budget would deliver a small surplus, providing there are no major shocks in the year ahead.
Last year’s 2.75 per cent rate rise was the lowest since Council amalgamations in 2008.
But this year ratepayers will be paying an extra $60 a year in sewerage charges to help meet the cost of the new $25 million Kingaroy Wastewater Treatment Plant.
There is also a $50 annual rise in water access charges and garbage collection fees will rise by $4 a year.
The $200 annual Road Levy will also stay in place for another year while the Council continues its fight to have Federal funding for the region’s road network restored.
In the coming year, the Council will:
- Maintain the existing $200 pensioner rate remission alongside the State Government’s $200 a year rebate
- Introduce a pensioner rebate on dog registration fees
- Remove fees for mowing contractors dumping green waste
- Maintain all existing Council services and staff positions
- Create eight new positions for apprentices and trainees
- Employ a full-time tourism officer
- Continue its support for not-for-profit community groups with $4.2 million worth of grants and rebates
It will also spend:
- $3.8 million on building maintenance and capital works
- $2.66 million on parks maintenance
- $1.6 million on natural resource management issues in rural areas
- $2.4 million on tip and waste transfer station operations
- $26.55 million on water and sewage infrastructure upgrades
- $27 million on road maintenance and capital works, including a $900,000 gravel resheeting program
- $3.7 million on replacing four bridges and rehabilitating two others
- $60,000 on beautification works in Kumbia
Mayor Wayne Kratzmann said the Council had resisted the populist approach of axing the road levy and running the Council into deficit because that would only cause major pain for residents in the future.
Instead, the hard yards ratepayers have had to travel between 2008 and 2013 have now been rewarded with two of the lowest rate rises since amalgamation, along with better than expected projections for future budgets in the years ahead.
The Mayor paid special tribute to local members Deb Frecklington and Jeff Seeney, who had helped the Council secure $20 million in State Government funding for the region over the last three years.
A further $7.16 million will come over the next 12 months for the Kingaroy-Kilkivan Rail Trail, Swickers’ second road entrance and the Kingaroy Wastewater Treatment Plant
The Mayor also thanked Deputy Prime Minister and Member for Wide Bay Warren Truss for assisting with changes to the Bridges to Recovery program, a new Fuel Excise bonus scheme and changes to NDRRA arrangements which will allow Councils to employ their own staff in any future disaster recovery events, rather than contractors.
- The full text of the Mayor’s 2015-16 Budget Address appears below:
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Councillors, today I deliver our fourth Budget under my stewardship for adoption, and can I say that I am immensely proud of the work that Council has delivered during my term as Mayor and will continue to deliver over the next 12 months.
By the end of the 2015-16 financial year, during this term of Council we will have delivered the following.
A stunning:
- $57.5 million on roadworks infrastructure
- $8.7 million on bridge replacement and renewal
- $9.8 million on buildings renewal
- $20.2 million on water infrastructure upgrades
- $29.8 million on wastewater infrastructure
- $700,000 on waste, primarily in the replacement of Rural Transfer Stations
This council has been able to do this due – in part – to being able to forge great partnerships with our other two tiers of government.
I acknowledge in particular the assistance given to us by our State members Deb Frecklington and Jeff Seeney.
During our term of just over three years to date we have had over $20 million come to our council by way of grants and subsidies.
No Council has worked harder or been rewarded more than the South Burnett Regional Council for our determination not to see our people suffer, but in fact to build a better region during a time of economic downturn and when both the State and Federal Governments are “cash strapped”.
It would have been easy for this Council to take the populist path and simply not have a road levy or see service charges increase and just run a deficit.
No, we have never been prepared to do that and I know all Councillors are extremely proud of our financial position – as you should be. The Queensland Treasury Corporation has given us the tick of approval and applauded Council for its strength of character.
Our surplus is only small but it is a surplus, and whatever happens in March 2016, the new Council for the next term will inherit a stable and well-run entity – something I am sure other newly elected tiers of government would have loved.
You know no one hates the Road Levy more than the Mayor and our Councillors, but the simple fact is that until the Federal Government gives us back the money that they have taken from us in reductions to our Federal Assistance Grants – now compounded by the ‘freeze’ on them until 2017/18 – we simply have no choice.
Our roads must be maintained and I make no apology for re-emphasising that local governments across Queensland receive less than their fair share of the taxation pie.
To put Council funding challenges into perspective, a rapid decline in support from Federal Government means that the South Burnett Regional Council now funds 80 per cent of its revenue from our own sources.
Compare this to 61 per cent prior to amalgamation, and less than 50 per cent 20 years ago.
Of the 100 per cent raised through taxation revenue, local government only gets a cut of approximately 3 per cent, yet has to maintain 80 per cent of the infrastructure.
We have not been silent about this and have been at the forefront in our lobbying to the governments, with the Deputy Mayor and myself in Canberra last week fighting for more money in Federal Assistance Grants (FAG).
The freeze on FAGs grants means that by the 2018-19 Budget, when the freeze is expected to be lifted, this Council will be receiving $2.75 million less in grant funds ongoing each year. That is money that belongs to everyone in the South Burnett.
Our continual lobbying is making a difference, and just in the last fortnight we have had major wins on the Federal scene with the Bridges to Recovery program, Fuel Excise and use of day labour for disaster events.
Can I acknowledge the assistance with these outcomes that we have received from the Deputy Prime Minister Warren Truss.
Councillors, can I take this opportunity to acknowledge the leadership of our CEO Gary Wall and in particular the work of our Finance General Manager Lester Schumacher for their assistance and patience in the preparation of this budget.
I’d like to also pay special tribute to the Deputy Mayor and Finance Portfolio holder Cr Campbell, who has worked side by side with me for the last five months preparing the budget.
Legislatively, the Budget is prepared by the Mayor and only has to be delivered to Councillors two weeks prior to the formal Budget Meeting.
However I am proud to say that unlike many other Councils, Councillors were involved all the way through the budget development process so by the time it was officially presented to Council two weeks ago there was a high level of awareness by all of our Councillors in the room today.
I can assure you, Budget discussions have been candid and lively, and that is a testament to my fellow Councillors and their passion to see our community do well.
Each year Council meticulously deliberates over the budget. We weigh up the best needs and future requirements of our community, the infrastructure that is in desperate need of upgrading and, most importantly, the forward planning of budgets to ensure the stability of our Council into the future.
We have put forward a modest budget with very little surplus to cover any budget shocks but one that still provides for the services expected in our communities.
This Council has resolved that we must continue to invest in the infrastructure of our community, rationalising each project as we would in our own household budget. This reflects the positive review of our financial sustainability undertaken by the Queensland Treasury Corporation late last year, which commended Council on the management of its finances.
This is a no-frills budget, which will see a 2.75 per cent general rate increase meeting the forecast projections for 2015-16, but delivering better than expected projections for future budgets.
Whilst there has been some increase to service charges, these have been kept to the absolute minimum to ensure the sustainability of our infrastructure.
Although we have not had success in the federal arena with the Federal Assistance Grants still remaining frozen, after being very vocal about the Bridges to Recovery program I am pleased to say that the $100 million funding allocation has been limited to local government applications only, a win for councils across Australia.
Whilst Queensland has seen a change in government in the last year, all of the groundwork in George Street over the past three years has meant that we have been able to secure the funds promised for the economic stimulus of our region.
This year we will see $7.16 million of State Government funds spent in our region with projects such as the Rail Trail, Swicker’s second road entrance and the Kingaroy Wastewater Treatment Plant coming to fruition.
These are critical key developments for our region that without government assistance we simply couldn’t afford.
Council takes every opportunity in maximising our dollar through grant applications, and to date have been punching well above our weight for councils of our size and rate base.
Our workforce has been maintained at its current level with no job losses.
Council recognises that it cannot continue to deliver the level of services enjoyed by our ratepayers by reducing staff or resources, and have this year considered ways to better utilise its staff to conduct our services more effectively.
As stated last year, we are a major contributor to our regional economy. Unlike other staff rationalisation across the country in government and private enterprise, we have fought to maintain our workforce.
A fundamental component in our Budget decisions has been the retainment of rate remissions for our community groups.
Council is also very aware of the plight of our pensioners so will continue with its own rebate of $200 to match the State Government rebate of $200 to provide pensioners with $400 off their rate bills.
I must note that Council carries the Pensioner Rate Remission as a complimentary service due to the failure of the Federal system to adequately support our pensioners.
In addition, I am pleased to say that we have also introduced a pensioner rebate on dog registration fees and removed the fees for dumping of green waste by mowing contractors.
This year will see the heavily lobbied-for Murgon to Kingaroy Rail Trail project come to its fruition.
This new industry development in the northern area of our region will open up opportunities for small business, sport development and community groups.
This project will be the single largest economic boost to tourism in a long time. The Rail Trail has huge potential for our small towns that will see them come alive again, complementing the Blackbutt to Linville Rail Trail. It will see the South Burnett emerge as the Rail Trail capital of Queensland.
Works in Blackbutt will be completed this financial year, with underground drainage being installed to finally bring Blackbutt to where it should be.
Although the pipe laying and reseals aren’t changes that we’ll be reminded of daily, we can take comfort in knowing that people in the future will never know that drainage problems in the main street ever existed.
This will be a proud achievement of this Council, bringing the town in line with our other major centres.
The principles of this Budget have been based on stability, delivering on our funded major projects and cementing our region’s future through youth employment, community assistance and replacement of core infrastructure.
Today, I am proud to announce that Council will be leading the way in youth employment by employing up to eight trainees and apprentices.
As one of the largest employers in the South Burnett we want to lead the way in developing our youth so that they are trained for our jobs in the future. Opportunity for apprentices and trainees is key to skilling the South Burnett workforce and Council has a diverse range of employment opportunities to offer.
This initiative supports our South Burnett Directions work in bringing economic stimulus to the region and in upskilling our local workforce.
Part of cementing our region’s future is also about assisting and enabling those community groups who have projects up and running that already assist our region.
Council will continue to support Community groups through its recurring annualised grants and rate remissions which total $325,458.
Add this to our discounts, pensioner remissions and building waivers, and the South Burnett Regional Council gives some $4,232,458 back to the community in cash from our revenue.
We have listened to our community throughout the budget process and constantly heard the request for more emphasis to be placed on tourism.
I announce today that we will be employing a full-time officer to support our tourism industry.
Council has developed its Economic Development Strategy in conjunction with South Burnett Directions and tourism plays a key role in this strategy. This person will assist in delivery of the Tourism Development Strategy at a grass roots level to deliver real outcomes for this industry.
Having mentioned some key initiatives of Council, I now must give due focus to infrastructure.
I can assure you that a key focus of Council continues to be roads. And while we have many more responsibilities to now provide in local government than ever before, this Council has increased expenditure in its road maintenance budget by an extra $700,000, which is simply unprecedented.
Three years ago our road maintenance expenditure had reduced to just over $4 million, it now stands over $6.75 million.
During my term as Mayor, I have been clear that we are about region-wide priorities, introducing a new way forward and focus for Council, hence the introduction of Councillor Portfolio responsibilities.
I thank my Councillors for taking this initiative on board and giving comprehensive updates at every Council meeting on the progress in their portfolio areas.
Under the watch of Cr Campbell, Deputy Mayor for Finance, Planning and ICT Portfolio we will see the long-awaited finalisation of the South Burnett Town Plan, enabling this Council to work from one plan rather than the four current plans.
This has been a long-time coming and I am pleased to finally see all the hard work coming to fruition.
This year will also see the finalisation of the implementation of our new business system software, which is already reaping dividends for Council in improved reporting and business analysis.
Plant and Fleet will see the necessary replacement of equipment to enable our workforce to efficiently undertake their jobs.
Plant scheduled for replacement includes two trucks, a loader, backhoe, roller and several mowers along with a number of utilities.
While Council’s primary focus is on roads it should not be forgotten that Council manages significant building infrastructure on the community’s behalf too. Since the creation of a dedicated property management team within Council two years ago we have placed greater emphasis on the management of these important community assets.
Led by Cr Palmer, approximately $3.8 million will be spent this financial year on building maintenance and capital works.
Some of the significant projects include:
- Completion of the Murgon Swimming Pool Complex
- Major repairs to Kingaroy Swimming Pool, including two new shade structures – one over the grassed area and one over the toddlers pool
- A new roof on the Wondai Administration Office & Hall and Kingaroy Town Hall Reception Room
- Internal repainting of the Proston Library
- Resurfacing of the carpark at the Murgon PCYC
- Replacement of the fence at the Proston Tennis Courts and
- A Child Play Room at the Murgon Tennis Courts
Cr Duff’s portfolio area of Natural Resource Management, Parks and Indigenous Affairs will see approximately $2.66 million spent on parks maintenance, which includes additional funds for increased service levels over the high growth periods from December to February.
$60,000 has also been provided for some beautification works within the township of Kumbia.
In addition, around $750,000 has been allocated for various capital works which include:
- New playground equipment in Kingaroy Memorial Park and Dingo Park in Wondai
- $50,000 towards refurbishment of the Anzac Rotunda in Kingaroy’s Memorial Park, a joint project with the Kingaroy RSL
- $20,000 for improvements to Wondai Skate Park
- A new toilet block will be provided in Settlers Park, Benarkin
- $300,000 has also been included for improvements to Glendon Street Carpark in Kingaroy which will see resurfacing of the carpark area, new playground area and other beautification works. This is in addition to funds allocated to resurface the access road and replace the water main in this area.
$1.6 million has been allocated towards Natural Resource Management predominantly being spent in rural areas, with continued support for the very successful landowner assistance programs.
This Budget continues to provide funds towards improvements at our two premier tourist attractions at the Yallakool and Lake Boondooma Tourist Parks, with a new manager’s residence planned for Yallakool and construction of a camp kitchen at Lake Boondooma.
These two parks are a valuable attraction to our region with over 27,000 visitors staying at them in the last 12 months
I am also pleased to see support included in the budget for NAIDOC School Week and other initiatives as part of this Council’s acknowledgement and support of Indigenous Affairs.
One of the most diverse portfolios within Council is Arts, Communities, Health & Waste Services led by Cr Heit.
There is no debate that without our wonderful community groups and hundreds of volunteers, many of our clubs and groups would not exist.
In recognition of this Council – in spite of the large pressures on our Budget – has continued with its policy of providing rate remissions to these groups at a cost of $253,000.
Our Community Assistance Grants program will also continue, with $117,000 allocated in this year’s Budget.
Support has been included towards the Regional Arts Development Program and the Big Screen Film Fest in Nanango, in the hope that National Film and Sound Archive can partner in funding the 10th year of this event.
The school-based immunisation program will continue to be supported by Council, along with the Healthy Communities Committee, continuing to positively influence our community in healthy choices.
This Budget sees the consolidation of the work undertaken in last two Budgets where all our rural refuse tips have now been now converted to transfer stations. Approximately $2.4 million will be spent on the operation of our 17 refuse tips and transfer stations across the region.
Last year’s Budget saw the commencement of our biggest single project to date, the construction of a new Wastewater Treatment Plant for Kingaroy.
The project is due for completion in September next financial year, however the majority of work will be undertaken during 2015/2016 with $17.35 million allocated in this Budget.
Portfolio holder for Water, Wastewater and Sport development, Cr Green and Councillors have spent many hours with staff to obtain a good understanding of this innovative method of treating sewage.
The technology utilised is new to Australia and is the subject of much interest with many other councils.
The $10 million funding provided by the State Government has been most welcome and has lessened the impact on our ratepayers for the much needed replacement of this infrastructure.
$5.1 million has also been allocated to finalise the upgrade of the Kingaroy Water Treatment Plant, and $550,000 will be spent on improvements to Murgon Water Treatment Plant.
In addition $1.95 million has also been allocated to continue with sewerage mains network upgrades and $1.6 million for water main upgrades across the region.
Cr Green’s passion for sport in the region is well known and I am pleased to see a small Budget allocation to address some of the findings in the recent sports survey.
Roads will once again be the primary focus of this year’s Budget with approximately $27 million allocated to maintenance and capital works.
Along with portfolio holder Cr Tessmann, I am pleased to note that this Budget will see the completion of two significant projects: the Nanango Streetscape and the Blackbutt Town Development.
The final stages of the streetscape, which includes a roundabout at the Drayton and Fitzroy street intersection, with the rest of Drayton Street works are nearing completion.
While this project has taken longer than Council would have liked, the final result has been worth it with Nanango CBD now looking quite spectacular.
The South Burnett’s major centre Kingaroy is also in need of a facelift and while no funds have been allocated in this Budget, funds have been provided in our forward programs to undertake this work.
It is anticipated that preliminary investigation and consultation would commence this financial year to enable full plans to be developed in next year’s Budget.
Work is scheduled to commence in late August on the significant drainage works and ancillary road works and kerb and channelling in Blackbutt. Approximately $800,000 worth of pipes will be delivered within the next few weeks.
Councillors have listened to our constituents and further increased its road maintenance budget.
Approximately $6.75 million will be spent on road maintenance, including $900,000 specifically targeted to a gravel re-sheeting program across the region, something Cr Tessmann argued for strongly.
A further $2.7 million will be spent on bitumen reseals and pavement rehabilitation of roads.
2015/16 is the third year of a four-year bridge replacement program which has already seen $4.7 million spent on replacing three bridges.
This Budget provides $3.7 million for a further four bridges (Campbells, Weens, Stonelands and Mondure) to be replaced and two timber bridges (Manar and Webbers) to be rehabilitated.
However, the final decision to proceed with all bridges mentioned above has yet to be made. That decision will be made once the final tender prices are received.
Council will also be reviewing if any of these bridges would qualify for the Federal Government’s “Bridges To Recovery” Program.
The Federal Government has doubled our “Roads To Recovery” grant for one year only, which will see Council receive $2.185 million this financial year.
This has been allocated to the road widening of Hazeldean Road; widening and parking at Durong School; widening of Weens Road; bitumen sealing of Johnson Street, Hivesville; widening of Rodney Street, Proston; widening and kerb and channel of Appin Street, Nanango; and curve realignment on the Tingoora-Chelmsford Road.
With the support of the State Government, $2.2 million has been provided towards upgrading of the intersection of Haly Street and Clarkes & Swendsons Road. This project is vital to the long-term sustainability of one of this region’s major employers and we are thankful for the support of the State Government.
Other key projects include $280,000 through Safe ST works at both the Tingoora and Murgon State Schools, $300,000 on various footpath projects across the region and $210,000 for the commencement of widening on the Blackbutt-Crow’s Nest Road, with the majority of works to be undertaken in next year’s Budget.
Our Budget has clearly focused on delivering within our means.
This is the year to see our projects come to fruition.
Council has been driven by sustainability and financial responsibility so that we can continue to ensure that we have delivered for our community, in the best way we can with the financial and staff resources that we have, and more importantly in the effort to secure and stabilise Council’s future.
I will continue to champion our region to the State and Federal Government during my remaining time as Mayor.
I am in Brisbane regularly ensuring that our needs are met and our regional issues are heard.
This Budget will sustain the South Burnett into the long-term and the tough decisions made under this council and the hard lobbying done will long outlast this term of local government.
The work of this Council has set solid foundations for our community to continue to build into the future, and with this I present the 2015/2016 South Burnett Regional Council Budget.
- Related article: Analysis: Hidden Benefits In This Year’s $63m Budget
