June 27, 2019 - Lowest rate rise includes relief for rural sector

The lowest general rate rise in the history of the Cassowary Coast Regional Council and a $38.7 million Capital Works program are highlights of the $120.6 million balanced Budget for 2019-20 presented by Mayor John Kremastos today (Thursday, June 27).

The budget’s numerous initiatives include reduction and removal of fees to encourage investment and promote job growth, water security, and solar installation to achieve further savings and reduce the carbon footprint. 

In his budget address, Cr Kremastos said sound financial management was at the heart of the 2019/20 annual budget that reaped the benefits of three years of planning for building a better future for the region.

“This budget proves the delivery of Council’s vision to build a better future for our region and our community. It adds to the foundation which was built by councillors and staff over the course of the previous three budgets,” Cr Kremastos said.

Key features of the budget include a continuation of Council’s record of low rate rises with an average general increase of only 1.3% and introducing more than $38 million of new capital works to provide better service and add to the amenity of the entire region.

Council recognises the significant contribution to regional wealth and employment by the primary production sector and is assisting the sustainability of that sector through keeping the increase to the Primary Production rate to a modest 0.9%.

Council has maintained its commitment to restrict rate rises to considerably less than the Consumer Price Index (CPI).

 “We have zero debt and a modest surplus. Once again, Council has avoided deficit budgeting and the Cassowary Coast region is in a very strong financial position, having met the Queensland Audit Office’s three prescribed sustainability ratios.

“The work done by Council, as demonstrated in the budget, encourages investment and generates jobs, particularly for our young people, and cares for our beautiful environment. This is in line with our policy of buying locally and employing locals, and to care for our built and natural environments.

“Council continues to deliver improvements to amenities and services whilst creating cost reductions for the benefit of the community now and into the future. We are proud that this budget responds to the community’s needs, and includes reduced fees and charges to attract investment without compromising our financial position and sustainability, or jeopardising services.”

Cr Kremastos said the Council valued its strong relationship with the Federal and State governments, which was reflected in generous grants and subsidies.  This included funding of around 70% for capital works for the $7.5 million Tully Grandstand and the Bulgun Creek and Wheatley Hill reservoirs, which would help ensure water security and minimise boil water alerts. Council had also won significant funding for roadworks.

Council was also committed to sourcing revenue from streams other than the ratepayer and this ‘own source’ income would further reduce pressure on rates.

He said $80,000 had been allocated for the Red Bull Defiance adventure challenge, a major sporting event this August 31/September 1 that would deliver economic benefit and boost tourism in the region. 

“Tourism is a major economic contributor to the region and in recognition of this we are spending $500,000 on upgrades to the Mission Beach CBD and a further $100,000 on the Innisfail CBD revitalisation.

“We are allocating a further $40,000 to the facade upgrade subsidy program to encourage building owners to rejuvenate shop fronts.

“The $7.5 million Tully Showgrounds grandstand has been allocated $4.5 million in this budget to complete the works. This modern facility will be one of the best outside of Brisbane and will provide a fabulous venue for local and major sporting events,” he said.

Cr Kremastos said an investment in renewable energy, especially solar power, would provide electricity savings in the region of $106,000 a year. This will be funded by $550,000 in Works for Queensland funding.

Council would also continue its roll out of smart water meters. A total of $492,000 had been allocated for smart meters, water service renewals and meter replacements in the Tully Water Scheme area.

“On top of this, we have $1.2 million allocated for the completion of the Wheatley Hill Reservoir and $3 million for Bulgun Creek reservoir to provide water security and minimise boil water alerts, and a further $2.5 million for water mains renewals for Cardwell, Tully, Silkwood and El Arish, and Innisfail,” he said.

This year’s protracted wet season had caused lengthy delays to scheduled roadwork programs. In addition to works already budgeted for, Council had allocated $2.5 million for unsealed road renewals, $1.6 million for bridge renewals, $1 million for regional reseals, and $1 million for sealed road renewals.

 “I thank fellow councillors and Council officers for the work and commitment to detail that has made this budget. We live in the very best part of Australia, and, I say, the best part of the planet and this budget will serve to make it even better,” he said.

HIGHLIGHTS OF THE 2019/20 BUDGET:

• Council has delivered a balanced budget with a total operating expenditure/revenue of $120.6 million

• The average general rate has seen the lowest rise since amalgamation with a slight increase of 1.3% (average), which is less than the CPI, and .9% for the Primary Production rate

• Total Capital Works Program worth $38.76 million

o $11.2 million on roads, bridges, guardrails, Cardwell Transit Centre, Goondi Industrial Estate upgrade, culverts, paths, footpaths and disability access

o $1.15 million waste management

o $3.4 million on completion of marine infrastructure and $800,000 for Clump Point Boat Ramp car park

o $40,000 towards Façade Upgrade subsidies, expected to generate revenue for local contractors

o Tully Showgrounds grandstand allocated $4.5 million to complete the $7.5 million project

o $3.44 million sewer program in Innisfail and Tully

o $8.18 million towards water infrastructure improvements, including smart metre roll outs, $1.2 million for the new  Wheatley Hill reservoir, $3 million for the Bulgun Creek reservoir and $2.5 million on water mains renewals in Innisfail, Silkwood and El Arish, Tully and Cardwell

• Reduction or no change in 476 fees, including building and planning applications, and scrapping of the credit card surcharge.

ENDS