Council's 2016-17 draft budget achieves rate cap while maintaining services
April 22, 2016
Colac Otway Shire Council's 2016-17 draft budget achieves the State Government's new rate cap of 2.5 per cent while maintaining services and delivering an underlying surplus.
The draft budget, which will be tabled at next Wednesday's Council meeting, is the first budget to be considered since the introduction of rate capping.
The proposed increase to the average rates and charges of 2.5 per cent, in line with the State Government's cap, equates to an increase of 88 cents per week per property and is one of the lowest rate rises in the shire's history.
Chief Executive Officer Sue Wilkinson said councillors and staff had worked hard throughout the year to ensure that Council's budget absorbed the impact of the rate cap without affecting services to the community.
"Our organisation developed a set of principles to base our budget decisions on, which included a culture of 'every dollar counts' and every $1000-$2000 saved is the equivalent of someone's rates; using less resources with an emphasis on innovation and efficiency; and minimising contract labour.
"We have delivered on these principles, implementing significant cuts to operating costs through changes to the organisation's business practices and identifying smarter, cheaper and more efficient ways to do things.
"It has been very challenging to deliver a draft budget in line with the rate cap and I'm very proud of the collaborative effort between staff and councillors to ensure this budget still delivers the services our community wants and needs while remaining financially sustainable," she said.
"Unlike a number of other councils in Victoria, Colac Otway did not seek an exemption from the State Government to raise rates any higher than the cap. We know this decision is in line with our community's expectations.
"We understand that many councils are preparing budgets which meet the rate cap by cutting their services or reducing the amount of maintenance they do on important infrastructure such as roads, bridges and parks.
"We have worked hard to find savings and to ensure we have maintained a strong focus on delivering the services our community needs and looking after our community assets and essential infrastructure like roads.
"We are presenting a financially responsible draft budget to our councillors, one that ensures Colac Otway remains in a sustainable, low-risk financial position."
Despite the low rate increase, Council is still prioritising a significant capital works spend of $17.57 million which includes $2.81 million for the completion of the Central Reserve redevelopment, $9.35 million for road improvement works, and $1.53 million for footpath and cycleway improvements.
The 2016-17 draft budget highlights include:
• An increase in the average rate of 2.5 per cent (including waste collection charges) equating to 88 cents per week per property – one of the lowest rate rises in the shire's history
• $17.57 million for capital works within the shire, including:
• $9.35 million for road reconstruction, re-sheeting, re-sealing and safety upgrades
• $2.81 million for the completion of the Colac Central Reserve redevelopment project
• $2.3 million for recovery works in bushfire affected areas
• $1.53 million for footpath and cycleway works, including $975,000 for the Colac CBD and entrances project, $290,000 for footpath extensions and $225,000 for footpath renewal
• $512,000 for recreational facility improvements, including the redevelopment of tennis and netball facilities at the Birregurra Recreation Reserve
• $216,000 for energy efficiency programs including street lighting upgrades which will generate future cost savings.
"Council will also trial a number of initiatives including two additional green waste collections across the shire to coincide with the start of the fire season, as well as an extra day (three operating hours) for the Apollo Bay Library from 1 August 2016," Ms Wilkinson said.
"Another significant achievement of this budget is that Council will not undertake any new borrowings and will in fact repay one loan in full three years earlier than scheduled which will generate future cost savings."
Ms Wilkinson said there would also be no increase in permanent staff across Council.
"A number of temporary positions have had to be created which are dedicated to supporting our coastal communities to recover from the devastating Christmas Day bushfire in Wye River and Separation Creek. However, all employee costs in relation to these 12.5 EFT positions are fully refundable through the National Disaster Relief and Recovery Arrangements."
Ms Wilkinson said despite Council's hard work to maintain services in the current proposed budget, rate capping and other cost pressures would have a significant impact on small councils such as Colac Otway in the future.
"We have very few sources of income other than rates. Without other income sources such as grants funding for example, Council might be required to make cuts in the future which may impact on service levels.
"We also face considerable pressure from government cost shifting, and the current freeze on indexation for federal assistance grants, which is having an $800,000 impact on Council's budget over four years," she said.
If the draft budget is approved by councillors for community consultation at next Wednesday's meeting, it will be released for comment and public submissions for a period of five weeks.
"I strongly encourage community members to take up one of the opportunities to comment on the draft budget, which will include drop-in information sessions in Colac and Apollo Bay.
Community drop-in sessions:
• Wednesday, 11 May at COPACC, from 5.30pm-7.30pm
• Thursday, 12 May at the Apollo Bay Senior Citizens' Centre, from 5pm-7pm
"Community consultation is a very important part of the budget process and we want to give community members the opportunity to come along and speak to us about the budget, and the projects and services that are important to them.
"We'd like our community to tell us whether the priorities we've set in our draft budget are the right ones, and we welcome people's comments."
The draft budget will be discussed at Council's 27 April meeting at the Apollo Bay Senior Citizens' Centre, which starts at 4pm.
If the draft budget is approved for consultation by Council, it will be available for viewing at www.colacotway.vic.gov.au, or at Council's customer service centres and public libraries in Colac and Apollo Bay from Monday, 2 May.
Council Enquiries
(03) 5232 9400