July 17, 2024
Cherbourg Council will not be increasing rents during the next 12 months, but CEO Chatur Zala has warned councillors they may have to tackle this tough topic in future years.
The Council formally adopted its Budget for 2024-25 at a special meeting on Wednesday morning.
It includes $24.07 million in operational expenditure and $13.71 million in capital works, funded mainly through grants.
Service charges have risen 5 per cent to keep pace with costs, however Mayor Bruce Simpson said to support community members during the current cost of living crisis, rental charges would not increase.
Cherbourg rents, which are levied by Council, are substantially lower than private rentals in surrounding towns.
Council also does not charge fees for dog or cat registrations.
The increasing depreciation of assets has hit hard this year, compelling the Council to forecast an operational deficit of $6.45 million.
CEO Chatur Zala pointed out that surrounding Councils considered depreciation costs when calculating their rate increases, but this option was not open to Cherbourg council.
Cherbourg Council’s main operating expenses are:
- Employee costs – $8.09 million
- Materials and services – $5.38 million
- Depreciation of Council’s assets – $10.51 million
Offsetting these expenses were total operating revenues of $17.62 million made up of:
- Grants and subsidies – $6.17 million
- Sales and recoverable works – $7.94 million
The balance came from rents, fees and charges.
Cherbourg Council currently has 143 employees, although not all are full-time positions.
Council continues to be the main local employer – and aims to continue creating more local jobs – but CEO Zala said it would have to work hard to keep this employment level sustainable.
The meeting heard that while revenue from its successful enterprises continued to grow, Council remained heavily reliant on State and Federal Government grants to make ends meet.
On the bright side, Council had zero loans and a healthy bank balance.
“As in previous years, financial and asset sustainability will be the focus of the capital program, with Council considering renewal of existing assets more favourably than the purchase of new assets, with the exception of community housing,” Mayor Simpson said.
“New assets not only impact on capital expenditure but also bring associated whole-of-life operating and maintenance costs with them.”
Cherbourg Council’s major capital projects for 2024-25 include:
- Finalisation of the Murgon to Cherbourg footpath – $1.75 million
- Refurbishment of the Town Hall, including technology enhancements and security upgrades – $600,000
- New housing builds – $5.85 million
- Major upgrades to existing housing – $2 million
- Roads and civil construction – $180,000
- Disaster management works, including flood cameras and raising the bund on the sewerage pumping station – $430,000
Other keys projects for Council include a revision of Council’s five-year Corporate Plan, a revision of the Cherbourg Masterplan, the development of a master plan for sports and recreation facilities, and the development of a risk management framework.
Other Council activities listed in the Budget include:
- Cherbourg Radio Station – $360,000
- Indigenous Youth Culture Connection Program – $200,000
- Sports and Recreation – $230,000
- Community Safety and Alcohol Management – $120,000
(Photo: CASC)
