June 21, 2023
A shock last-minute move by South Burnett Mayor Brett Otto to overturn weeks of deliberations failed at Wednesday’s Budget meeting.
Councillors had previously agreed during pre-meeting discussions to bring down a 3.65 per cent rates rise, but just minutes into the meeting Mayor Otto moved an amendment saying he now considered the imminent threat of drought – and what he described as unexpected electricity prices rises – should be taken into account.
He proposed a 2 per cent rise across the board on rural and residential properties.
To make up a portion of the almost $250,000 gap this would create across the Budget projections, he proposed slugging the Tarong Power Stations, Meandu Mine and renewable power projects with a 25 per cent rate rise.
Cr Kirstie Schumacher warned the Mayor that unless this proposal could be justified due to changes in employment numbers or other factors, it could be challenged in court, and this had occurred previously.
Mayor Otto said the proposal could be justified due to the impost on Council roads caused by these “heavy industries”.
Deputy Mayor Gavin Jones pointed out that both the coal mine and Tarong Power Station could only be accessed by State-controlled roads.
After extensive debate – and breaks to allow Council staff to process exactly what a 2 per cent rate rise, or a 2.65 per cent rise, would mean to Council’s bottom line, Mayor Otto’s amended motion was put to a vote and was defeated five votes to two, with only Cr Kathy Duff supporting the Mayor’s position.
The original Budget motion was then voted on, with both the Mayor and Cr Duff voting against.
This means general rates will rise by 3.65 per cent, setting the lowest general rate at $1034 a year.
The Rural Fire Brigade levy will stay at $25 a year; and the Community Rescue and Evacuation Levy, which supports RACQ LifeFlight, will remain at $5 for all rateable properties.
The Waste Management Levy will rise by 6 per cent to $185, and so will Waste Collection charges, which will rise to $192 a year for residents receiving a weekly waste collection service, plus an extra $74 a year for residents receiving a fortnightly recyclables service. Bunya Mountains residents will now pay $231 a year.
Sewage charges will rise by 3 per cent to $784 for the first pedestal and $525 per extra pedestal, except for houses connected to the Proston Common Effluent System where charges will be $462 for a first pedestal and $310 per extra pedestal.
Water supply charges will rise by 1 per cent to $737 a year, and $369 for vacant properties.
Saleyard fees will rise to $7.50 per beast. The Budget meeting was told this rise followed extensive consultations with local livestock agents and would help fund future upgrades to the Coolabunia Saleyards.
Council will retain its $200-a-year pensioner discount for rates notices, along with its 30-day, 10 per cent discount for prompt payments.
It will extend the deadline before interest is charged on outstanding rates bills from 30 days to 60.
Council will also extend a full general rates discount to QCWAs, youth accommodation services, youth groups such as Scouts and Girl Guides, Senior Citizen and welfare groups, kindergartens, service and sporting clubs, showgrounds, race tracks, museums and heritage organisations, charitable organisations and community-owned halls.
It will also embark on the second year of its three-year averaging process to help relieve some of the pain caused by a steep land revaluations carried out by the Valuer-General in 2021.
These rises particularly affected rural residential properties in the Blackbutt area.
New Differential Rating Categories have been created for heavy industry, multi-unit dwellings, transformers, piggeries, feedlots; and the wind farm and solar farm rating categories have been combined.
Near the end of the Budget meeting, Cr Schumacher described the Mayor’s action of voting against the Budget, after months of deliberations, as a “media stunt” and a way for him to avoid responsibility and accountability.
Mayor Otto vehemently rejected this, saying it was unfair, personally offensive and a breach of standing orders to infer motives on colleagues in Council.
Cr Schumacher withdrew the allegation the Mayor’s vote was a stunt.
Wednesday’s 3.65 per cent rates rise is the largest during this term of Council, but lower than the 4 per cent brought down by the Toowoomba Regional Council earlier this month.
It follows a zero per cent rise in the South Burnett in 2020-21, a 1 per cent rise in 2021-22 (zero for rural properties) and a 1.75 per cent rise in 2022-23.
In comparison, TRC rates rose 2.5 per cent during each of these three periods.
On Wednesday, Western Downs Regional Council handed down an average general rates rise of 3.8 per cent.
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Budget Highlights
The total Operational Budget is $81 million up from $72 million in 2022-2023. This includes:
- $2.1 million – Bitumen resealing program
- $1.9 million – Pavement Rehabilitation Tingoora-Chelmsford Road
- $2 million – Council contribution to flood damage restoration works
- $1 million – Major mechanical repairs
- $1.5 million – Wondai CBD & roundabout upgrade
- $770,000 – Home Creek Loop Road Bridge
- $500,000 – Shoulder resheeting program
- $1.4 million – Kingaroy to Murgon Rail Trail pavement reseal and crossing repairs
- $450,000 – Murgon QEII Park redevelopment
- $450,000 – Kingaroy Memorial Park Youth Precinct redevelopment
- $730,000 – Murgon PCYC bathroom and squash viewing platform renovations
- $2.65 million – Utility and Truck Renewals
- $250,000 – Establishment of Maidenwell Transfer Station
- $303,000 – Completion of Nanango weighbridge
- $1.75 million – New Mount Wooroolin reservoir
- $800,000 – Gordonbrook Dam spillway works
- $1.6 million – Regional sewer relining
- $205,000 – Coolabunia Saleyards upgrades
- $340,000 – Regional swimming pool upgrades
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Deficit
Overall, the SBRC’s Budget will produce a predicted $3.48 million deficit, however on paper this could rise to $6.3 million or as high as $10 million, depending on the timing of the payments this financial year of the Federal Government’s Financial Assistance Grants.
Council CEO Mark Pitt emphasised these were not “grants”, but rather a share of taxation revenue which all councils receive, and which has been brought forward in recent years.
“The timing of the payment of this grant has no material impact on our Council’s financial position, which is strong,” Mr Pitt said in a media statement.
“What it does impact is our financial statements.”
He said any discussion about “financial sustainability” based on this accounting treatment would be “a moot and irrelevant point”.
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Borrowings
There will be no extra borrowings by Council over the next 12 months.
However, Council will be looking to borrow in 2024-2025 and 2025-2026 to assist with costs associated with the mandatory Gordonbrook Dam wall upgrade.
Council’s borrowings with the Queensland Treasury Corporation are predicted to be $27,147,746 for June 2023.
Total borrowings will be reduced down to $23,796,091 over the next 12 months through loan repayments, with a large portion of Council’s loans due to be paid out by 2030-2031.
This is compared with a peak in borrowings of $44,931,544 in 2016.
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[UPDATED]