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Shire Releases Budget ProposalsEast Gippsland Shire’s Budget proposals for the financial year 2006/07 provide for further debt reduction and a spending boost on infrastructure. By East Gippsland Shire Council - 17th May 2006 - Back to News The proposals that were presented to Councillors at a Special Council Meeting forecast an operating surplus of $9.4 million after raising rates and charges of $27.6 million (including residential garbage collection charges) and capital revenue contributions of $10.4m.
Shire CEO Steve Kozlowski said that 06/07 Budget was part of the long-term financial plan covering the period until 2009/10 and had been framed in close consultation with Councillors and senior Shire staff.
Key directions and initiatives include:
- Growth in gross infrastructure spending with capital outlays to increase by $3.9 million over the 2005/06 Budget to an estimated $16.4 million for 2006/07. (Total Gross Capital outlays for 2006/07 – 2009/10 are estimated at $65 million)
- Service delivery at current levels with an estimated outlay of $1.4 million for new initiatives for 2006/07 including $903,000 for ongoing initiatives and $497,000 for ‘one offs.’ The new initiatives have been funded mainly through budget reallocations and increases in revenue from sources other than property rates.
- Continued reduction in debt and no new borrowings. A further $1.5 million of debt will be repaid resulting in a balance of $7.7 million by June 2007. It is planned that by June 2010 debt will be $3.3 million.
- Acknowledgement of a revaluation of infrastructure assets and the resultant impact on depreciation levels and in turn the Shire’s expected operating result. Depreciation is estimated to have increased by $2.0 million over 2005/06 to an estimated total of $11.2 million.
- The continuation of the policy of increasing rate revenue annually by a projection of the consumer price index plus 2% that is quarantined for asset renewal/upgrade expenditure plus an extra 2% to fund the significant cost increases to impact in the 2006/07 year.
- Reduction of the farm rate discount from 10% to 5% that was canvassed in the rating strategy review conducted in 2004.
- The continuation of the 5% pensioner rate rebate scheme in addition to the State Government assistance.
- The quarantining of an additional $85,000 from the Commercial and Industrial rate to provide a total of $173,000 for additional economic development and tourism initiatives.
Mr Kozlowski said the 2006/07 Budget has been prepared from a solid base as a result of the current financial year’s position.
"The strong rating and capital operating services provisions that exist within the Shire compared to many other Victorian councils, also contribute to our sound financial position," he said.
Mr Kozlowski said the proposed rate increase of seven percent is slightly larger than what was anticipated in terms of the "CPI plus two percent" formula
"The additional two percent is due to the loss of the $180,000 national competition policy and a recent decision that the Eastern Gas pipeline could not be rated and the consequent loss of just on $300,000 annual income from that source," he said.
"The combined effect is the equivalent of approximately two percent of rate income."
Mayor Cr Jane Rowe said that Council has prepared a significant budget for the forthcoming financial year and had adopted a five years capital expenditure program that would approximately $90 million worth of capital projects in the Shire.
"This level of expenditure in capital projects is unprecedented and due primarily to our good financial position," she said,
"We are also optimising on the significant grant income and other external sources of income that are being made available to council and that are expected to be delivered over the next five years."
Cr Rowe said some of the major programs that are to be implemented over the period include upgrades of the BARC auditorium and childcare facilities, refurbishment and redevelopment of the Bairsndale City Oval facilities, a new indoor sports facility, significant wetlands and storm water flood mitigation works for the Eastern Creek Drain in Lakes Entrance and implementation of the significant capital works program for the Tambo Bluff Estate worth approximately $15 million and a boost to arts and culture spending.
Members of the public can make submissions on any items contained in the proposed budget. Copies of which are available on the shire’s website or from Library Business Centres. The "Budget Submissions Committee" will hear representations on 6 June 2006.
Source: http://gippsland.com/ Published by: news@gippsland.com
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