Council’s 2020-21 budget – the first step in moving forward together

Through partnerships with higher levels of Government and by working together with community by building stronger connections and engagement.

In delivering this budget, Council remains conscious of the financial, social and emotional burden endured by our region’s residents through the cumulative impact of the ongoing drought and COVID-19 pandemic.

In response to such, Council has been careful to formulate a considered and measured response to supporting the community through these challenging times.

This budget includes the first 0% general rate rise in the history of the South Burnett Regional Council, along with:

• a 0% increase to the majority of Council controlled fees and charges;
• a 0% increase to the commercial wheelie bin charge in support of small business;
• an amnesty on outstanding debt recovery during the COVID period;
• miscellaneous case by case deferral or relief of service charges for local not-for-profits;
• refunding all prepaid Council facility reservations; and
• a commitment to supporting local small business through reforms to Council’s procurement policy.

Other than from new rateable properties, Council will receive no additional income from general rates, however it is important to note that some ratepayers general rates will increase, while others will decrease. This is due to the phased in valuation of their land. Council adopted 3-year valuation averaging as a means of smoothing or phasing in the large land valuation increases caused by the land revaluation undertaken by the Department of Natural Resources Mines & Energy as at 01/07/2019.

As part of Council’s engagement policy, the mayor will be holding community forums across the region throughout August to provide further community information on rates and charges.

An operating budget of $67 million will support the delivery of key community services and facilities maintenance programs. Within this $67 million, $28.5 million has been set aside for asset renewals, underpinning Council’s strong commitment to sustainable infrastructure across our extensive road network, water, wastewater, and community buildings and parks and gardens assets.

There is a $2.2 million cash surplus, with an overall operating deficit of $3.6 million after depreciation. A contributing factor is an increase in depreciation of $2 million, due to the valuation of building assets.

At 30 June 2021, Council’s current assets are projected to $49.2 million dollars, including $43 million in cash at bank. Current liabilities are projected to $14.8 million.

Total assets are projected to $951 million, total liabilities to $61 million, of which Council borrowings are projected to reduce to $33.6 million. Council has adopted a debt policy of no new borrowings this year.

Total community equity is projected to increase to $890 million by 30 June 2021.

This budget position reflects the first stage in the budgetary process. Council will be embarking on a series of further financial reviews during the course of the year.

Asset management planning has facilitated the development of a $38 million capital investment program to be shared across all communities, encompassing:

• $22.5 million on roads, drains and bridges;
• $5.8 million on buildings, parks & gardens;
• $3 million on water infrastructure;
• $3.7 million on sewerage and wastewater infrastructure;
• $2.315 million on plant;
• $350,000 on waste assets;
• $480,000 on information technology systems.

Providing secure and reliable water and sewerage services is a significant responsibility for Councils. Our local water and sewerage network is under increasing stress due to ageing infrastructure. Long-term financial forecasts indicate that additional cash reserves will be required to fund significant capital expenditure associated with the replacement and upgrading of essential water and sewerage assets. In order to accumulate the required cash reserves Council has adopted a measured and responsible approach to increasing water and sewerage charges to smooth the impact on users over consecutive years.

As such, to provide for sustainable management of these critical assets, water and sewerage user charges will increase as follows for the 2020-21 financial year:

• the water access charge for urban residential users will increase by 2% from $611.50 per annum to $624 per annum (an increase of $12.50 per annum);
• water consumption charges will increase by 2.1% from $1.54 to $1.57 (3 cents per kilolitre) on tier 1 consumption and by 2.1% on tiers 2 and 3 (an annual increase of $1.56 per annum for a household consuming 52 kilolitres per annum);
• the wastewater (sewerage) charge will increase by 2% from $724.70 to $739 per annum (an increase of $14.30 per annum);

Most urban residential ratepayers will pay an additional $28.36 for water and sewerage services.

Council is compelled by state legislation to make provision for future landfill costs. Long-term financial forecasts indicate that additional cash reserves will be required to fund significant capital expenditure associated with future landfill. In order to accumulate the required cash reserves, Council has again adopted a measured and responsible approach to increasing waste charges so as to smooth the impact on users over consecutive years.

As such, waste user charges will increase as follows for the 2020-21 financial year:

• the waste management levy will increase by 8% from $150.50 to $162.50 per annum (an increase of $12.00 per annum), including a $2.50 charge to maintain the current opening hours at all tips and to increase the opening hours at the Murgon and Wondai tips to seven half days per week;
• domestic wheelie bin charge will increase by 2% from $165 to $168 per annum (an increase of $3.00 per annum); • there will be no increase to the commercial wheelie bin charge, remaining at $243 per annum;

Overall, most urban residential ratepayers will pay an additional $15.00 per annum for waste collection and disposal services.

The community rescue and evacuation levy will increase from $4 per annum to $5 per annum, with all funds going directly to Lifeflight. The state emergency management levy, also known as the rural fire levy will not increase, remaining at $130.20 per annum.

This means that most residential ratepayers will have an increase of $44 a year, or 85 cents a week, with a change in rates and utility charges of 1.79% compared to rates and utility charges levied in 2019/2020.

Rural ratepayers without water, sewerage and bin collection services are not subject to these charges

Council’s maximum $200 pensioner rebate remains, matched by the $200 maximum State Government pensioner subsidy.

By working together we can position our region to achieve its potential. I have a strong sense that the current decade will provide a renewed period of regional prosperity. By uniting as one region comprised of many diverse communities, we will move forward together.