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East Gippsland Shire’S 2007/08 Budget PassedEast Gippsland Shire’s 2007/2008 Budget was passed at a Special Council Meeting last night. By East Gippsland Shire Council - 27th June 2007 - Back to News The budget will see a total expenditure of $50.64 million including capital expenditure of $24.55 million.
To support this an amount of $29,015,323 will be raised from general rates that have been increased by 6 percent as well as municipal and waste collection charges.
The general property rate will account for $15,754,254, the commercial/industrial rate $2,710,498 and the farm rate $3,191,925.
The Municipal charge of $176 per property will raise $4,698,496 and the kerbside waste and recycling collection charge $2,660,150.
The budget that has been framed to maintain long-term financial sustainability provides:
- A lift in gross infrastructure spending to an estimated $18 million, up by $3.9 million over 2006/07.
- Maintenance of service delivery at current levels with an estimated outlay of $2.07 million for new initiatives.
- Continued retirement of old debt resulting in a balance of $7.45 million by 30 June 2008 and reducing to $2.43 million by June 2011.
- New borrowings of $1.283 million in 2007/08 and $7.988 million in 2008/09 for the Tambo Bluff Estate. Income generated from the Special Charge Scheme will be used to cover loan repayments.
The budget forecasts an operating surplus of $22.3 million after raising rates and charges of $29.6 million and capital revenue of $17.6 million and underlying operating surplus of $1.734 million.
It also takes into account cost increases on goods and services of approximately 3.0 percent per annum based on the Reserve Bank medium term projection; a decrease of $460,000 in allocations from the Victoria Grants Commission of Federal Assistance Grants; the requirement to perform a general property revaluation for use in 2008/09 expected to cost $750,000 more than the amount provided for in the 2006/07 budget.
To fund the $2.2 million impact of these external influences Council proposes measures including:
- Vigorously pursuing income from "Council Business" such as Marinas and Caravan Parks;
- Increasing general rates of 4 percent with an additional 2 percent quarantined for infrastructure renewal.
- Continuation of the 5 percent Farm Differential.
- Continued support a Commercial/Industrial Rate Differential that provides for an Economic Development Fund of $200,000 that is quarantined for allocation by the East Gippsland Shire Economic Development Advisory Board for Economic Development and Tourism initiatives.
- Continuation of the 5 percent pensioner rate rebate scheme in addition to the State Government assistance of $172.90 per annum.
Mayor Cr Mendy Urie said the budget reflected well on the Shire’s financial management policies.
"Ongoing debt retirement to minimise interest repayments as well as carefully managing our spending has allowed us to grow expenditure on much needed infrastructure maintenance and development and at the same time contain the general rate increase 6 percent that is modest compared to many other councils," she said.
"A local Government case index published by the Municipal Association of Victoria have shown municipal costs generally have increased annually by 5 percent so the shire’s increase is certainly within an acceptable range.
"It has also meant that the shire maintains a healthy financial position that is set to further strengthen in the years ahead."
CEO Steve Kozlowski said that careful financial planning and management had seen the Shire’s position continue to improve.
"We believe the budget is a clear indication of the Shire’s capacity to implement the key initiatives and outcomes contained in the Council’s forward plan.
"It also means we can continue to provide high services levels across the board and without any community penalty.
Source: http://gippsland.com/ Published by: news@gippsland.com
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