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East Gippsland Budget Proposes Biggest Ever Infrastructure Spend The largest infrastructure ‘spend’ ever undertaken is a key feature of the proposed 2009/10 Budget passed for public comment by East Gippsland Shire Councillors at a Special Council Meeting last night. By East Gippsland Shire Council - 13th May 2009 - Back to News Gross Capital outlays for the new financial year will increase by $10,000,000 over the 2008/09 Budget to a record $41,300,000.
The proposed Budget forecasts an underlying operating surplus of $2,708,000 for 2009/2010 after raising rates and charges (including residential waste collection charges) of $34,090,000 and capital revenue of $24,900,000.
Other Budget features include:
· The retirement of a further $1,429,000 of old debt that will result in a balance of $3,253,000 by 30 June 2010.
· New borrowings of $3,699,000 in 2009/10 and $5,769,000 2010/11 to provide infrastructure at the Tambo Bluff Estate where benefiting landowners will repay the amount over time.
Major projects that will benefit from new infrastructure spending program include the Cunninghame Quay Project at Lakes Entrance ($675,000); Bairnsdale Library/Visitor Information Centre ($3,000,000); Esplanade upgrade at Paynesville ($1,000,000) as well as a Shire-wide roads and bridges upgrade program ($8,801,000); stage one of the Metung Marina project ($2,750,000); phase three of the BARC upgrade ($250,000);Paynesville Community Centre ($1,300,000); Eastern Creek Lakes Entrance and Orbost drainage ($1,970,000).
Other new initiatives in 2009/10 will include Community plans for all towns, Paynesville library becomes full-time, Increase financial allocations to Committees of Management, $175,000 to Library for new resources, $40,0000 for urban street tree replacement, feasibility study for arts and community hub for Mallacoota, part implementation of Paynesville Urban
Design Framework, funding for a performing arts program and an indigenous employment program in Bairnsdale and Orbost
Councillors voted to pass the proposed Budget that, following consideration of public submissions, will receive final consideration at a Special Council Meeting on 30 June 2009.
Mayor Cr Mendy Urie said that the Budget had been framed in a very tough economic environment.
"While our own regional economy remains strong, the Shire has been impacted by the overall global economic climate and this has resulted in reduced income from sources such as government grants and interest on investment," she said.
"We have also experienced Inflationary increases on goods and services of approximately 4.0 percent per annum based on the Reserve Bank medium term projection, a decrease in real terms in the allocation from the Victorian Grants Commission of the Federal Assistance Grants and increased costs relating to Road and Bridge construction that as at 31 December 2008 were running at 8.2 per cent per annum.
"There is also ongoing financial pressure managing and maintaining waste services on behalf of the community that with the increased compliance costs, Environment Protection Agency levies and the proposed Carbon Pollution Reduction Scheme will require Council to develop a strategy that will provide a sustainable roadmap for the management of waste services into the future.
"However, in spite of this and because of our history of careful financial management, we have been able maintain a strong financial position that will not compromise service delivery to our community.
"We are also able to embark on our most ambitious capital expenditure program that will have the dual effect of continuing the upgrade of key infrastructure and providing a regional economic stimulus that will help maintain current employment levels."
"There are also many more projects across the shire that will improve services and facilities," she said.
Shire CEO Steve Kozlowski said that to fund the impact of external influences Council has proposed a relatively modest 5 percent increase in the general rate based on a combination of 4 percent for inflation due to the estimated rise of the Consumer Price Index (CPI) and 1 percent to fund significant expenditure categories that increase at greater than CPI levels.
"The rate increase of 5 percent is expected to be at the lower end of the scale when compared with the financial plans of the other Gippsland Councils and municipalities across Victoria," he said.
Mr Kozlowski said the Shire would continue to pursue income sources from "Council Business" such as marinas, East Gippsland Livestock Exchange and caravan parks to ensure the general ratepayer was not subsidising these operations.
"The Budget will also continue to provide for a 5 percent Farm Differential and provide a Commercial/Industrial Rate Differential that finances an economic development fund of $230,000 quarantined for allocation by East Gippsland Shire’s Economic Development Advisory Board for relevant initiatives," he said.
"It will also continue the 5 percent pensioner rate rebate scheme in addition to available State Government pensioner rebate that for 2008/09 was $178.60 per annum, and which is expected to increase in line with CPI."
Mr Kozlowski said public submissions were now sought and should be received by 12 noon on Friday, 12 June 2009.
* * *
Further information – Mike Quist, 5153 9500
Source: http://gippsland.com/ Published by: news@gippsland.com
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