Strathbogie Shire Council budget adopted
Strathbogie Shire Council has formally adopted its 2010/2011 budget. Council unanimously passed the 15% rate rise which is made up of an 11 per cent, ``Infrastructure Catch-up Levy'' on top of a proposed four per cent rate increase. This will translate to approximately $228 on the average rate bill this year.
The 15 per cent overall average rise is topped by changes to its commercial and industrial rate structure, resulting in an added five per cent impost on businesses.
Council acknowledges the valuable contribution of all of those community members who informed and enhanced the budget process through the making of submissions and participation in the community budget workshops.
Mayor Howard Myers said, "This has unquestionably been the most difficult budget process in the history of Strathbogie Shire. Council's infrastructure renewal challenge is substantial and in the absence of support from the other tiers of government, Council had no alternative other than to generate the critically needed funds from our local community. The budget and forecast do, however, demonstrate that we will make significant progress over the next 4 years and that the financial impost on the community will reduce over the forecast period."
Notwithstanding the current rating strategy, Council will continue to pursue a strong advocacy campaign during the next 12 months, and beyond if necessary, to endeavor to secure a more equitable outcome for Strathbogie Shire ratepayers.
In response to the verbal submissions made at the meeting held on 3rd August, the various written submissions received and feedback received through the budget community information process, the following amendments were made to the draft 2010/11 Budget.
Rural Land Management Rebate
The draft budget proposed the phasing out of the Rural Land Management Rebate over 3 years. Following consideration of matters raised during the consultation process, the rebate is to remain in full pending thorough investigation in 2010/11 of the possible implementation of a Farm Rate differential in conjunction with the 2011/12 budget.
Commercial/Industrial Differential
The draft budget proposed the introduction of a differential rate for Commercial/ Industrial properties. The proposed differential was to be fully introduced in 2010/11 at the rate of 120% of the Residential Rate. Following consideration of matters raised during the consultation process, the Commercial/Industrial differential is now proposed to be implemented over a period of 4 years, commencing with a differential of 105% in 2010/11 and increasing by a further 5% per annum in each of years 2, 3 and 4 of the budget forecast period.
Budget Expenditure Savings
Community workshops conducted by Council during the budget consultation process assisted in the identification of potential savings which could be achieved through a revision of current service levels.
Council has subsequently revised its service levels in the areas of Tourism and Events ($90,000 saving), Economic Development ($35,000 saving), Waterway Management ($23,000 saving) and Compliance ($60,000 saving - commencing 2011/12). Further, Council has removed from the budget the proposed new Town Maintenance and Improvement Team initiative ($139,000 saving) and as a consequence of the reinstatement of the Rural Land Management Rebate, the proposed new Environmental Management Program Grants initiative ($50,000 saving).
A review of budget revenue has also identified an additional $20,000 revenue, expected to be generated from higher than originally anticipated boating fees. The increase is a direct consequence of the recent introduction of automated ticketing for boats operating on Lake Nagambie.
The total recurrent savings plus increased revenue resulting from the above budget amendments is $357,000.
Council also proposes to defer the purchase of a backhoe included in the draft capital budget, a saving (net of trade-in) of $163,000.
The total savings of $520,000 have been applied to an increase in capital expenditure on infrastructure renewal projects ($500,000) and a minor increase to working capital ($20,000).
The increased commitment to expenditure on infrastructure renewal and the identification of substantial recurrent savings have enabled a significant reduction in rate increases over the forecast period, with years 2 and 3 of the forecast period each reducing from 15% to 9%.
Consistent with Council's rating strategy; it is encouraging to note that the performance indicators for the year 2013/14 demonstrate an underlying surplus and the full funding of depreciation.
Mayor Myers said, "Council has made the changes outlined above and will continue to look for cost savings in its operations, to ensure that after this year the rate rise will be no more than 9% for the following two years, and 8% in 2013 - 2014. In making these changes, Council will have closed the infrastructure gap and be operating with a small surplus in four years' time. It is Council's view that these measures, which now return $1.64million to help with Infrastructure Catch-up and reduce ongoing operating costs, put us in good stead for the future."
For more information: Marli Kelly 0409 410 178