Snap shot of the 2011-2012 Budget

Budget

2011-2012

Mayor hands down conservative budget

“I believe that this is a fiscally responsible Budget which will provide a solid foundation to carry our region forward.”

- Cr Gail Sellers Mayor Gladstone Regional Council

Mayor Gail Sellers handed down Gladstone Regional Council’s most conservative budget to date at Tuesday’s ordinary meeting of Council.

In the boardroom of the Gladstone Civic Centre, Mayor Sellers said Council had developed the Budget with one goal in mind: To minimise rate increases while still enabling Council to provide necessary infrastructure and services in a growth climate.

A highlight of the Budget, according to the Mayor, was Council’s decision to continue with rate capping on rural and residential properties, plus the expansion of differential rating to offset some of the large fluctuations in land values that resulted from the State Government’s new ‘site valuation’ methodology.

“The only way Council can mitigate the impact of these changes is to maintain the existing rate cap of 10% for rural and residential properties and a 15% cap for business and light industrial properties,” Councillor Sellers said.

“We’ve also recognised the plight of high valuation residential properties which have continued to face large valuation increases by introducing a banding system for valuations over $650,000.

“This predominantly includes waterfront properties in Gladstone, Boyne Island, Tannum Sands, Agnes Water and Seventeen Seventy.”

The Mayor discussed the impacts of a predicted rise in the local government cost index from 4.2% last financial year to 7.5% this financial year, significantly above the Consumer Price Index for the past 12 months of 3.8%.

In explaining the key points of the Budget, Councillor Sellers said general rate revenue generated from most sectors of the community would increase by 2.8% next year, well below CPI.

“The major emphasis in terms of expenditure will be to deliver approximately $50 million in flood damage repairs on our roads.

“There will be no increase in the current standard refuse charge of $255 per service.”

Councillor Sellers said domestic sewerage charges would see charges in Gladstone, Boyne/Tannum and Calliope increase by $1 per week, but she explained that Council’s 10-year phase-in of parity pricing for access charges for all sewerage schemes meant the charge at Agnes Water / Seventeen Seventy had not been increased.

Domestic water access charges for the 2011/2012 year are set to increase by 50 cents per week in the Lake Awoonga Scheme; 65 cents per week in the Miriam Vale/ Bororen Scheme and 25 cents per week in the Agnes Water/Seventeen Seventy Scheme.

The consumption charge in the Miriam Vale/Bororen and the Agnes Water/Seventeen Seventy Schemes will remain unchanged, consistent with the policy of moving to parity pricing over a 10-year period.

But one increase that Council cannot avoid, according to the Mayor, is an increase in the Lake Awoonga treated water supply, which will result in residents on that scheme paying $1.95 per kilolitre from the current $1.50 per kilolitre rate.

“This figure reflects the overall cost of water charged by the Gladstone Area Water Board to Council, which has been independently reviewed by the Queensland Competition Authority.”

Councillor Sellers thanked the Councillors, the staff and the CEO for their effort in formulating Budget 2011-2012, which was four-months in the planning.

GENERAL RATE REVENUE

*2.8% GARBAGE COLLECTION CHARGE

=

No change

1770/AGNES WATER SEWERAGE CHARGES

=

No change

nMiriam Vale Water Treatment Plant

nYour Guide to the Budget

nAirport carousel extension plan

Miriam Vale township is one step closer to getting an upgraded water treatment facility. Council allocated $235,000 for design and preliminary works to upgrade the plant in its 2011-2012 Budget.

Council’s Infrastructure Services portfolio spokesperson Councillor Matt Burnett said while the existing facility produced potable water, the upgrade would provide greater plant efficiency and improved water quality. “An upgrade of the Miriam Vale system will bring it in line with other water treatment plant upgrades across the region,” he said. Council is focused on maintaining and improving its infrastructure components to deliver cost-effective and efficient services. “The upgrade of the water treatment process will enable Council to deliver a consistent product to Miriam Vale residents.”

Council has produced a publication called “Your Guide to the Budget” which is available for download from Council’s website at www.gladstone.qld.gov. au. The Guide explains the Budget in easy-tounderstand language, plus provides tables, graphs and explanatory information aimed at helping demystifying this important Council document. The Budget and corresponding annual Operational Plan can be found at the website by clicking on the ‘About Council’ and then ‘Finance’ and ‘Corporate Documents & Reports’ links respectively. The Mayor’s Budget statement, a media kit, photographs and other information has also been provided for your convenience. For more information Email media@gladstonerc.qld.gov.au

Gladstone Airport users will soon notice changes to the baggage carousel area aimed at reducing congestion in the terminal’s arrival lounge.

Gladstone Airport portfolio spokesperson Councillor Clyde Cameron said the cost of minor alterations, included in the Budget, would disperse congestion in the terminal that has arisen as a result of increased passenger numbers.

“The airport is currently preparing a revised Airport Master Plan that will provide medium and longterm options for the baggage collection area,” Cr Cameron said. “In the first quarter, of the new financial year, the existing carousel will be lengthened as far as possible along the northern facing wall.”

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Budget

2011-2012

nUser-pays philosophy drives planning fee rises Council will strive to balance the budget within the Statutory Planning area by increasing fees and charges significantly in 2011-2012 in order to reduce the cost burden on Council from $1.5 million in 2010-2011 to $78,000 this financial year. Based on a recommendation of the Mead Organisational Review Report, Council has opted to work towards greater cost recovery by increasing fees substantially in 2011-2012. Building and plumbing application fees will increase by about 20%; operational works by 10% and planning increases will be between 20 and 25%. These increases, when combined with an expected increase in development activity rates, are expected to achieve greater cost recovery in order to balance the budget. Planning and Development portfolio spokesperson Councillor Craig Butler said Council believed the fee increases were the best option for ensuring future financial sustainability of Council.

The second option explored involved decreasing services, which Cr Butler said was not viable in a rapidly growing region. “This decision is based on a user-pays principle and is the fairest and most equitable way of reducing costs to Council.”

n$1.6m for Benaraby Landfill expansion A total of $1.6 million has been dedicated to increasing Benaraby Landfill’s capacity while also reducing the carbon footprint created by its operations. A total of $800,000 will be directed towards the construction of a new waste storage cell to cater for the projected increase in refuse arising from the region’s continued rapid population growth. Council’s Environment and Regulation portfolio spokesperson Councillor Col Chapman said measures were being taken to reduce the impact of the landfill’s expansion. He said the cell expansion would be conducted in three stages ultimately covering an additional 24 hectares of land and providing the additional waste storage area required as the population expands.

ALERT system to give early flood warnings Lessons learned during the severe flooding of December 2010 and January 2011 has resulted in a joint initiative project to install early flood warning system along the Boyne River and Baffle Creek.

Council, through its Disaster Coordination Program, has provided $100,000 in funds towards the joint initiative with Gladstone Area Water Board (GAWB) to improve the region’s ability to monitor flood waters and provide earlier warnings and updates to residents and visitors during severe wet weather events.

Finance portfolio spokesperson Councilor Lyn Paton said Council was hopeful of securing funds via the Queensland Government’s Natural Disaster Resilience Program to get the ALERT system in place this financial year.

If successful, the result would be an equal share funding arrangement between Council/GAWB and the Federal and State Governments.

“The Baffle Creek system, in particular, causes isolation on a regular basis. There’s no system in place at the moment to record rainfall or water levels to a degree that provides for early warning and data on which to base decisions regarding community advice and possible evacuations,” Councillor Paton said.

“Periods of isolation can be for many days and include the township of Agnes Water as well as the other rural communities of the Discovery Coast. The Baffle Creek community has only one recognised access and egress bridge, which easily becomes inundated .”

Cr Paton said the events of this summer showed that the Boyne Island and Tannum Sands communities were also at risk, especially given the current

Director of Finance Mark Holmes, Finance portfolio spokesperson Councillor Lyn Paton and GAWB Acting CEO Gary Larsen discuss the ALERT system.

level of Awoonga Dam. “We had a situation this year where the level of flow from the over-topping of Awoonga Dam when combined with a potential high tide placed the communities of Tannum Sands, Boyne Island and Benaraby at risk of onein-100 year flooding.

Additionally, Cr Paton said the installation of the ALERT system equipment and the ability to record information to provide a history of events would enable informed planning decisions to be made to reduce community vulnerability to the possibility of flooding in these systems.

Masterplan for Barney Point foreshore Council will develop a master plan for the redevelopment of the Barney Point foreshore, but the final design will not include a water playground that was earmarked for the site in late 2009.

Council, in handing down Budget 2011-2012 today, committed $197,000 to revise the redevelopment of Barney/Friend Parks after the State Government committed $10 million towards the $35 million Auckland East Shores Precinct development, which includes a water park area.

Cr Graham McDonald discusses the Parks and Recreation portfolio spokesperson Barney Point redevelopment with Councillor Graham McDonald said Council would now Parks & Conservation Manager Helen focus its attention on upgrading existing facilities and parkland at Barney Point, rather than the construction Paulsen.

of a staged, $10 million pirate ship-themed water park at the site.

“The redevelopment will involve rejuvenating the adjoining parks at Barney Point so families can continue to swim, play, picnic, walk or just relax in the parklands,” Cr McDonald said.

“The revised design will include enhancement works to the existing pathways and picnic/barbecue areas, increased parking and a walkway along the beach front. Council is mindful of preserving the existing ecological and cultural significance of the area.”

The Barney Point redevelopment will be conducted in stages, commencing this financial year.

$5m for Curtis Island LNG sewerage scheme Gladstone Regional Council has allocated $5 million in its 2011-2012 Budget as its contribution to a $30 million sewerage scheme planned for Curtis Island.

Council’s Infrastructure Services portfolio spokesperson Councillor Matt Burnett said this was a combined project with the Gladstone Area Water Board to supply services to the

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Liquified Natural Gas industry sites on Curtis Island.

“Although the project will generally be funded by the LNG industry, Council’s allocation, if required, will be for an incremental upgrade of its sewerage infrastructure to enable all LNG sites on Curtis Island to be serviced,” he said.

“Proponents that are not currently in a

position to commit to the project may ultimately be required to connect to the scheme in the future and pay costs.”

Delivery of the service is earmarked for early 2012.

Right: Cr Matt Burnett looks at plans for a sewerage scheme for LNG on Curtis Island.

Budget

2011-2012

Tannum land development gets the green light Council has made the difficult but important decision to develop a parcel of land at Tannum Sands that was formerly earmarked as a future shopping centre site.

Council has allocated funds in the 2011-2012 Budget to secure town planning consultants to undertake the application process for the subdivision of 18.63 hectares of land on the former Tannum Sands Civic Precinct site, opposite Tannum Central Shopping Centre.

Additionally, the Budget provides for internal staff to progress planning documentation and undertake engineering design and actual construction work.

Corporate and Business Services portfolio spokesperson Councillor Rick Hansen said Council had not taken the decision to progress the development lightly but it did so after considering the dire shortage

Cr Rick Hansen looks over Council’s plans for the development of land in central Tannum Sands. of residential land immediately available in the rapidly growing community.

“This land is ideally situated in central Tannum Sands and Council has no

short or long-term plans for it now that shopping centre developments have either occurred or are planned for the future on alternative nonCouncil owned sites,” he said.

“This development will provide vital

land stock to this rapidly expanding market; provide capital return from the sale of 70 blocks of land; provide ongoing rating income and reduce costs associated with maintaining the vacant land.”

Cr Hansen said the community’s needs had changed significantly since Calliope Shire Council set the land aside for future shopping centre growth.

“Since then, we’ve seen the significant shopping centre and commercial developments at Tannum Sands and Boyne Island.

“Also, given the fact that future large scale residential development will occur in the planned communities such as Tannum Waters, which include shopping centres, the need for Council to provide land for shopping centres in the Boyne Tannum is not considered a priority at this stage,” Cr Hansen said.

New Local Laws officer gives Council great Agnes presence Gladstone Regional Council’s Local Laws is set to have a greater presence in the Agnes Water district with the provision of a new Local Laws Officer in Budget 2011-2012.

Council’s Environment and Regulation portfolio spokesperson Councillor Col Chapman said the addition of a part-time officer to the Local Laws team would benefit the Agnes Water community in several ways.

“The obvious benefit is that the additional presence in the area ensures Council can better Local Laws Enforcement Officer Tamara Brumby manage animal control within the Discovery and Councillor Col Chapman will welcome a Coast,” Cr Chapman said. greater Local Laws presence in Agnes Water.

“Every year we have a large number of complaints

generated within the Agnes Water and surrounds about the number of unregistered, wandering and sometimes dangerous dogs and cats.

“Having an officer based in the area means Council has more in which to carry out animal inspections.”

Cr Chapman said employing the new officer would also result in improved operations at the Agnes Water pound.

“The pound is being extended to provide shelter for more animals and having an officer on site for extended hours means Council can also now construct additional drop-off cages at the facility.”

nVideo sewer and stormwater inspections Gladstone Regional Council will spend $1 million to gain a better understanding of its sewer main and stormwater drainage networks condition and long- term maintenance requirements.

Council, in its 2011-2012 Budget, allocated funds to undertake comprehensive video inspections of these underground assets, throughout the region.

A total of $600,000 will be spent on sewer main inspections and $400,000 toward inspections of Council’s stormwater drainage network.

Council’s Infrastructure Services portfolio spokesperson Councillor Matt Burnett said the funds would be used to undertake the condition assessment programs.

Cr Burnett said similar inspections were carried out in previous years but to a lesser extent and the increased Budget allocation emphasised Council’s commitment to better management of assets.

“A new truck purchased in the last financial year to clean sewer lines, pipe lines and some stormwater drains will be phased in for service across the region to complement existing resources and equipment which will be operated over a seven day roster,” Cr Burnett said.

“The truck, fitted with tree root cutting equipment and a pressure cleaner vacuum, removes sediment build-up by cleaning the mains to avoid overflows and other problems.”

Council offers a helping hand to not-for-profit community groups Not-for-profit community groups stand to benefit from Council’s $347,000 Budget allocation for Community Support.

Community Services portfolio spokesperson Councillor Maxine Brushe said she was pleased Council was able to again deliver a package to assist not-forprofit regional groups through Council’s ‘Grants to Community Organisations’ Program.

“Annually, the provision of community

grants offers valuable financial and in-kind assistance to not-for-profit community groups and organisations within the Region,” Cr Brushe said.

“This financial year, $347,000 has been budgeted with grants available in a number of categories.

“Organisations eligible for a grant can submit one application per category by a specified date as publicly advertised each financial year.”

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Grant categories include: • Educational institutions • Heritage and Museums • Regional Events Support • Sport & Recreation Event Sponsorship • Regulatory Fee Reimbursement • Use of Council Plant and Equipment • Public Hall Subsidy • Tidy Towns Entry Fees • Education and Guidance • Performing Arts

Council’s Veronica Laverick, Cr Maxine Brushe and Janine Sorrensen discuss the community grants available to not-for-profit organisations.

Budget

2011-2012

nWyndham Park set for $122,000 revamp The popular Wyndham Park in Boyne Island has received $122,000 in Budget 2011-2012 for a detailed landscape design and construction of a new playground and recreational facilities. Gladstone Regional Council removed the playground earlier this year after an internal audit revealed it no longer met Australian Standards for Playgrounds, prompting the need to redevelop the historically named park area. Council’s Parks and Recreation portfolio spokesperson Councillor Graham McDonald said funding was allocated towards the redevelopment to ensure Council was providing safe public parks and facilities for residents and visitors to the region.

n$225,000 funding for sport and recreation grants With the adoption of Budget 20112012, Council has reaffirmed its commitment to sport and recreation groups by funding several grant programs. Council’s Parks and Recreation portfolio spokesperson Councillor Graham McDonald said the $225,000 funding was vital to assist sporting and recreation community groups. Council will offer two community support programs this financial year - the Club Development Grant (CDG) and the Facility Assistance Grant Program (FAGP).

The CDG is split into two rounds each financial year with up to $12,500 available each round.

nCCTV upgrade and extension planned The protection of assets and assisting in efforts to reduce crime in the community has led to an additional commitment of $107,000 in the 2011-2012 Budget for Stage 2 of Gladstone Regional Council’s CCTV strategy. Council’s Corporate & Business Services portfolio spokesperson Councillor Rick Hansen said the strategy provided for the upgrading and installation of a total of 120 CCTV cameras in strategic locations. He said the focus areas were the Airport; Gladstone CBD and Library; Gladstone Art Gallery and Museum; Marina Bridge; Gladstone Depot; Millennium Esplanade; Civic Centre; and Gladstone Community Advisory Service.

Instrument landing system for airport Gladstone Airport will complete the installation of a $10.5 million Instrument Landing System (ILS) within the next 12 months as a Budget 2011-2012 carry over capital project.

It is expected that the project will be fully funded by the LNG proponents.

Gladstone Airport portfolio spokesperson Councillor Clyde Cameron said the ILS would complement airport re-development work in 2011 and confirm the airport as one of the most advanced regional aviation facilities in Australia.

The ILS is a precision approach system designed to provide course and vertical guidance to landing aircraft.

This system is most commonly used in areas prone to significantly bad weather but can also be used to ensure safe distances between aircraft and significant obstacles in the approach path.

The net result for Gladstone will be safer aircraft operations.

Ground-based, the installation of the ILS requires a combination of earthworks to ensure minimal obstacles are present, improved runway and guidance lighting and specific guidance equipment such as a localiser.

Cr Cameron said preparation works for installing the system started this year and were expected to be completed by the second quarter of 2012.

“Gladstone Airport currently operates with Precision Approach Path Indicators (PAPIs),” he said.

“While PAPIs are a fantastic and simple way to provide a basic approach path, they are not in the same category as an ILS. “The new installation will provide far superior aircraft guidance and all the safety benefits that come with that.”

Councillor Clyde Cameron discusses the $10.5 million Instrument Landing System at Gladstone Airport with Assistant Airport Manager Neil Bachmann.

Cr Cameron said installation of the ILS would significantly contribute to Gladstone Airport.

“The introduction of a new air carrier to the region, in addition to the airport runway and terminal upgrade, has delivered all-round benefits for airport users,” he said.

“The modern facility proudly welcomes air travellers to Gladstone and is primed to cater for increased passenger capacity resulting from future regional growth.

“The number of passengers using the Gladstone Airport is currently growing at a rate of 30% and further significant passenger increases are expected during the next two years.”

Council to count the cost of infrastructure charge changes Council anticipates a significant shortfall over the next 15 years in the money it receives for headworks charges as a result of the State Government’s decision to cap infrastructure charges from July 1, 2011.

Infrastructure Planning staff are continuing to review the current residential data to accurately estimate the impact of the State’s new rules.

To ensure Council’s models and data sources are precise so that accurate cost forecasts can be made, Council has committed $1.3 million this financial year to enable vital modelling work to be carried out.

More than $400,000 of this allocation has been carried over from the 2010-2011 year.

Planning and Development Services portfolio spokesperson Councillor Craig Butler said the

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Councillor Craig Butler looks over development plans. Council is anticipating a significant shortfall in the money it receives from headworks charges as a result of the State Government’s infrastructure charges cap. modelling would have an equally important purpose as well by providing a framework for the Priority Infrastructure Plans (PIP) which are required as part of the land-use planning process that is

under way.

“This modelling forms the basis of much of Council’s infrastructure network capital works program and the framework for the PIP which are required as part of the planning

schemes,” Cr Butler said.

“One of the important outcomes from this work will be that the true costs of providing infrastructure to new developments can be calculated, and the impact of the State Government’s decision to cap infrastructure charges can be seen.

“We will get the true costs of augmenting the current networks to ensure the community is provided with the level of service it deserves.”

The modelling work will be carried out on the following networks: Traffic Modelling; Water Modelling; Sewer Modelling; and Stormwater Modelling.

The Infrastructure Planning team will also take a lead role in the continuation of the Southern Corridor Project, which seeks to enhance access and infrastructure options into the southern areas of the Gladstone Region.