Cairns Regional Council has adopted a 2012-13 budget with an operating deficit of over $6 million, but say its sights are set on economic growth.

Mayor Bob Manning said a $298.4 million operating budget had been developed under difficult circumstances.

“We have faced no shortage of challenges in bringing down this budget,” Cr Manning said. “But we face these challenges with a fair degree of optimism that we will see a turnaround firming in the next 12 months.

“In the short term, we have decided to keep any rates increase to a minimum, without adversely impacting our capital works program.”

In order to keep the increase in rates and utilities (water and waste) to an average of 3.7 per cent, Council has adopted a budget with an operating deficit of $6.6 million.

“Our operating position has been impacted by factors such as the Carbon Tax, negligible growth in subdivisions and lower developer contributions,” Cr Manning said.

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“We have needed to adopt a deficit position to ensure the rates burden remains as low as possible, while ensuring adequate funding to deliver essential services and programs.

“We have adopted a $93.75 million capital works program, which includes upgrading of suburban streetscapes, roads and drainage improvements and projects that will help to grow the potential of our primary business district.

“We are also putting in place economic incentives to help stimulate employment, supporting our communities through sporting facilities and disaster preparation and supporting the events and activities that make our region unique.”

Council says financial modelling has the region returning to a surplus operating position in 2013-14.

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