Financial responsibility...
Our Challenge This budget has been developed to provide essential services and infrastructure for the community, however rising costs over the next 12 – 18 months will continue to impact on the financial capacity of Council. This coupled with the prolonged contraction in the development industry has resulted in a significant reduction in funding for the provision of key infrastructure. In addition, the significant reduction in State subsidies has impacted on Council’s ability to provide essential infrastructure and has resulted in the necessity for Council to increase borrowings to fund the gap from the removal of these subsidies. The costs of operating and maintaining the water and wastewater assets of the Fraser Coast have increased significantly. Sewerage sludge and waste disposal along with mechanical and electrical maintenance have increased by 42%, while chemicals have increased 6%. Another significant contributing factor to increases in water costs is the building of large-scale, long-term infrastructure for water and wastewater services; most recently this includes the Nikenbah Wastewater Treatment Plant and the Burgowan raw water main. The provision of infrastructure adds significant interest and depreciation costs which are apportioned over the life of the facility.
Our Opportunity The budget delivers a modest increase in general rate revenue of 5.40% (which is below the Local Government Associations of Queensland’s expected increases of 7%). This aims to build on the strong foundation for developing the region’s future long-term financial sustainability. Council will also continue where possible to provide business to local companies and contractors to carry out work.
Our Commitment Because Council is aware of the rising cost pressures faced by the community, it is ensuring that the budget delivers a modest rate increase. Operational Savings - Council has identified $2.7 million in savings during the budget process. Since amalgamation Council has reduced its operational expenses by $10.27 million and will incur an operating deficit of $3.6 million in 2011/12 to shield ratepayers from significant cost increases and revenue shortfalls. While savings have been made, Council will maintain service levels to ratepayers and continue to improve operations and operate more efficiently.
Doing More with Less Council will incur an operating deficit this year which will require Council to identify new innovative service delivery models and drive operating efficiencies to reduce costs and to return the budget to surplus in 2013/14. Council is investigating ways to work smarter and more efficiently and is focussing on the priority projects for the region.