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East Gippsland Shire Budget Adopted

East Gippsland Shire last night adopted its Budget for the financial year 2006/07 that provides for further debt reduction and a spending boost on infrastructure.

By East Gippsland Shire Council - 3rd July 2006 - Back to News

The Budget was passed at a Special Council Meeting and provides for 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.

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 offset the loss of the $180,000 national competition policy funds and $300,000 from Eastern Gas pipeline that now cannot be rated following a court decision.

  • 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 draft budget had been amended to remove revenue expected from the Shire’s marina assets and private jetties.

"Groups with interests in these particular areas made representations at the recent public hearings," he said.

"Councillors and Shire management accepted that further consultation was needed before increasing fees and charges."


Source: http://gippsland.com/

Published by: news@gippsland.com



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