Council Budget: Rate rise and a focus on essential projects
ANNUAL COUNCIL BUDGET
The Douglas Shire Council has handed down its 2021/22 Annual Budget today with a focus on essential projects in what the mayor has labelled a “budget of reality”.
Under the Budget, there will be a minimum general rate increase of 2.8% across the board, a $50 million operating budget and a $16.047 million capital works program.
Across the next 12 months, Council will spend $19.045 million on materials and services, providing more opportunities for local contractors and suppliers.
“Council is continuing to get on with the job of investing in critical infrastructure and providing valued community projects like new playgrounds and recreational areas,” Douglas Shire Mayor Michael Kerr said.
“We are keeping our focus on improving our water network through a $3.73 million investment in water quality and reticulation, while $8.06 million will be spent on essential civil works such as roads, footpaths, bridges and drains.
“This includes a $1 million investment by Council to install trunk infrastructure such as culverts, water mains and sewerage pipes at the Craiglie Residential Estate to help stimulate more land sales and get more houses built in our region.”
Council estimates about $524,000 in pensioner and other rate rebates will be delivered during this period.
Rate rise
Council’s financial position is expected to improve to a $2.3 million operating deficit following last year’s $3.2 million deficit after COVID-19.
Following an independent review of its differential rating categories structure, Council has implemented new rate categories.
“We have been able to maintain the minimum general rate increase to 2.8 per cent across the board, better than the 3.3 per cent originally forecasted,” Mayor Kerr said.
“Meanwhile, about 36 per cent of people living in units, known as Residential Building Units, will see a reduction in their rates bill. You will also see through our new categories, that if you live in your house or unit, your rates will now be lower than those with holiday homes or rental properties.”
Mayor Kerr said the new rate categories achieved a more equitable distribution of rates closer in line with community expectations.
“There will be winners and losers in these new categories, but the playing field is certainly becoming more even and further rate model reviewing will be done next year to improve the fairness and balance of rateable properties,” he said.
“Under our new categories, people who live locally in their house or unit have a fairer assessment of their bills than ever before.
“I appreciate that some may be critical of this minimum increase of 2.8 per cent being more than CPI, which was the goal, and I will be the first to apologise, but no one foresaw the effects of COVID-19 and we must ensure that we continue to have enough revenue to be able to offer the current service levels plus more in this Shire.
“We are persisting at looking for ways to create jobs, alleviate housing shortages, repair infrastructure and ensure our economy becomes stronger.”
The budget was passed, three votes to two, with Councillors’ Abigail Noli and Roy Zammataro voting against.
“With the large multimillion deficient this organisation now has, council needs to exercise greater operational restraint to afford the cost blowouts,” Cr Noli said.
“It is undoubtedly a challenge but greater rigour and prudence in the commitments and investments that council do must be implemented.
“The 2021/22 budget is neither here nor there in my eyes, it doesn’t tackle the deficient question aggressively enough nor does it bring value for money considering the amount of revenue coming in in comparison.”
Project highlights
A $16 million capital work spend sees a number of projects forecast for the Shire.
$8.06 million have been directed to roads, footpaths, bridges, and drains. This includes $2.5 million for the Cooya to Mossman Cycleway, $1 million for trunk infrastructure in the Craiglie residential estate, $1.8 million for bridge repairs, and $600,000 for road reseals.
$3.7 million has been budgeted to improve the regions water infrastructure, while $776,000 will go to wastewater and sewerage, and $590,000 for rubbish and recycling.
$550,000 will go towards parks and gardens, and $400,000 will go to sports and recreation including $250,000 for the implementation of the Sports Master Plan, $150,000 for the Mossman Pool and Caravan Park Design and $100,000 for the Rex Smeal Park playground.
Mayor Kerr said he was looking forward to getting the public involved in a number of projects such as the Mossman Pool and Caravan Park design, Rex Smeal Park playground upgrade and Port Douglas Aquatic Precinct.
“Our staff have already started some great work behind the scenes and we look forward to releasing more details about these exciting projects in coming months,” he said.
“We are taking a staged approach which requires careful planning, robust consultation and smart investment.”
See the full budget report here.
View the full Special Council Meeting below. Budget discussion start at eight minutes.