Budget Budget Su mmary 2012-2013
BUDGET AT A GLANCE
A message from the Mayor
$328 million
TOTAL BUDGET
$117 million
Water and Sewerage
$93 million
Roads and Drainage
$27 million
Arts and Culture
$24 million
Parks and Open Space
I am pleased to present this Budget on behalf of the newly elected Gladstone Regional Council. A key aspect of the development of the Budget has been on ensuring that short term decisions are in line with Council’s Long Term Financial Plan, which has been given a Sound Rating by Queensland Treasury Corporation. This means Council has been able to consider the long-term picture of service levels, rate increases, capital programs and borrowing levels when developing its budget. The challenge for this Council remains to balance the pressures of growth, while operating in an environment that is producing a number of affordability issues. We have faced several challenging years with successive flood events and the recovery process has been
For every $100 of your rates, Council delivers a range of services...
a difficult one in the current growth climate. This financial year, $188 million of the $328 million Budget will be invested in the capital expenditure required to ensure our region keeps pace with the ongoing demands for soft and hard infrastructure, and to repair flood damaged roads. With respect to flood repairs, a total of $45 million of funding has been provided by the Federal and State Government through the Natural Disaster Relief and Recovery Arrangements. The overall impact of Budget 2012-13 on residential and rural sectors, based on an annual sample of properties across all localities, is 1.42 per cent, or $32 for the year. Meanwhile, general rate revenue from the residential sector will increase by just 1.6 per cent in 2012-13.
This is in line with CPI for the last 12 months, through to the end of March 2012, and is below the local government cost index, prepared by the LGAQ, of 3.6%. This Budget Summary has been produced to help explain our Budget 2012-13 and give you an understanding of where ratepayers’ funds are spent. Please visit Council’s website at www.gladstone.qld.gov.au to download a copy of Budget 2012-13, view our Media Kit and find out where Council intends spending money in the coming year. - Mayor
Gail Sellers
Roads, construction, maintenance, engineering, drainage, bridges and footpaths.
$26.00
Planning, development assessment, regulatory services, environment compliance and land use.
$2.70
Parks, playgrounds and open space.
$6.61
Sewerage infrastructure and maintenance operations.
$20.19
Water infrastructure, maintenance and operations.
$12.62
Arts, culture and libraries
$7.99
Wheelie bin collections and management of waste facilities.
$3.98
Property and Facility management
$7.55
Community wellbeing, sport and recreation and aquatic facilities.
$6.55
Customer Service, administration, human resources, IT and safety.
$5.81
Budget 2012-2013
Operating v Capital Budget - What’s The Difference? Council’s Budget is best considered in two parts: The Operating Budget
The Capital Budget
The “operating budget” is the money required for operating and maintaining existing services and infrastructure, such as roads, water, sewerage and parks. This includes the day-to-day running of the many community and recreation facilities, including Council’s libraries, administration centres, art gallery, community advisory service, pools and entertainment centre.
The “capital budget” is the money allocated to providing new infrastructure or adding new components to existing infrastructure. Examples of capital projects include building new parks, roads, bridges and transport facilities; new community centres; or adding new components to existing parks, buildings or water and sewerage networks.
TOTAL OPERATING BUDGET
TOTAL CAPITAL BUDGET
$140 million
$188 million
Of the $188 million capital works program proposed for the 2012-13 year, $38 million will be funded through loan borrowings. The reason that Council borrows money for investment in capital projects is to ensure the cost of long term infrastructure is shared by all users over the period of its life. It would be unfair to ask current ratepayers to completely fund infrastructure which will be used by future generations.
$101 million of this year’s capital works program (54%) will be funded from external contributions and capital grants. Delivery of significant infrastructure across the region is being partly funded from direct corporate contributors, headworks receipts from developers, as well as partnerships between Council and State and Federal Governments.
Page 2
Budget 2012-2013
Where Does The Money Come From? The bulk of Council’s operating budget revenue is generated through general rates and service charges. General rates are essentially a tax on property and are based on the unimproved or site value of land. Service charges are levied on properties that receive a specific service.
SERVICES THAT COUNCIL PROVIDES AND LEVIES A CHARGE ON RATES NOTICES INCLUDE:
Garbage Collection Water Access Charge Maintenance, repair and upgrading of the water network.
Water Consumption Charge
Per kilolitre charge for water consumed.
Sewerage Charge
REVENUE SOURCES 2012-13 CAPITAL BUDGET Operating Grants & Contributions 10%
Recoverable Works 3%
Interest 3%
Fees & Charges 17%
Rates & Service Charges 67%
OTHER SOURCES OF INCOME INCLUDE:
Fees & Charges These are fees and charges that Council imposes for providing other services to customers, such as development application fees, animal registration costs, licence fees, facility entrance charges and the like.
The charts show the source of Council’s operating and capital budget revenue
Grants & Subsidies This is generally funding from other sectors of Government (State and Federal).
Recoverable Works These are works that Council undertakes on behalf of others and recovers the costs. For example, the Main Roads Department pays Council to do maintenance work on some main roads in the region.
REVENUE SOURCES 2012-13 CAPITAL BUDGET Transfer from Reserves 26%
Loan Funding 20%
Interest Interest earned on money invested.
Transfers from Reserve Funds Money that has been put aside in previous years to fund new or replacement infrastructure.
Loan Funding
External Capital Grants & Subsidies 54%
Money borrowed from external parties. Page 3
Budget 2012-2013
Where Will The Money Go? EXPENDITURE BY DEPARTMENT Council’s business is divided into directorates. Each directorate is provided with a budget allocation to maintain and operate existing infrastructure and services and for new capital projects. Listed below are Council’s Directorates and a brief listing of their major areas of responsibility.
WHERE THE MONEY IS BEING SPENT OPERATIONALLY
Debt Repayments 7%
Office of the CEO 3%
Transfer to Reserves 17%
Finance 9%
Office of the Chief Executive Officer Strategic Management of the Organisation; Council Meeting Management; Governance and Legal functions; Human Resources; Occupational Health & Safety; Internal Audit; and Business Improvement.
Waste 4%
Water 12%
Budget; Financial Management including Rating; Asset Management Coordination; Disaster Management; Corporate Performance & Reporting; and Risk Management.
Arts & Culture including Performing Arts/Gladstone Entertainment Centre; Arts & Heritage/Gladstone Regional Art Gallery & Museum; Libraries; Customer Relations; Information & Communication Technology; Records Management; Customer Service; Communications & Marketing; Community Wellbeing including Human & Social Services; Community Health and Sport & Recreation; Contracts & Facilities including Fleet Management; Contracts Management; Procurement & Stores; Property Services; Project Services; and Gladstone Airport.
Parks & Recreation 12%
Sewerage 7%
Chief Financial Officer
Corporate & Community Services
Corporate & Community Services 18%
Roads & Drainage Network 11%
CAPITAL EXPENDITURE ANALYSIS 2012-13 BUDGET Parks & Environment 2% Fleet 5% Waste 2% Corporate & Community Services 22% Sewerage 27%
Planning and Environment Planning Assessment; Development Works; Building & Plumbing; Strategic Planning; Economic Development; Parks & Environment; Conservation & Rural Land Management; Environmental Health; Local Law Enforcement; and Animal Management.
Water 7% Roads & Drainage Network 35%
Engineering Services Road Construction & Maintenance; Drainage Operations; Water & Sewerage Operations; Design Services; Local Government Public Car Parks; Street Sweeping; Footpath Management; and Waste Management. Page 4
Budget 2012-2013
So What’s The Effect On Rates? GENERAL RATES RESIDENTIAL GENERAL RATE
*1.6%
GARBAGE COLLECTION CHARGE In developing this Budget, Council was very aware of the following factors: • The cost pressures placed on the community in the current
GLADSTONE
5.8
per week
c
($3 per annum)
Domestic garbage collection charges for the two bin system increases to $258 throughout the region in 2012-13.
economic environment. • Council’s re-valuation by the Valuer-General during the financial year, which saw valuations across the region as a whole increase by 18.3%. • The CPI for the last 12 months, through to the end of March 2012, was 1.6%, while the local government cost index, prepared by LGAQ, was 3.6%. General rate revenue generated from the residential sector will increase by 1.6% next year. 23% of residential property owners (4,651 properties) will receive a rate reduction. A further 18.1% (3,637 properties) will receive an increase of less than the CPI of 1.6%. The balance will have varying increases with the maximum increase capped at 10%. The rate cap will not be applied to bulk residential development properties. General rate revenue from the rural, business and light industrial sectors will also increase by 1.6% next year.
* Properties that are subject to the rate cap may experience a greater increase in general rates up to the maximum of the rate cap which is 10% for rural and residential properties and 15% for business, commercial and light industrial properties.
SEWERAGE GLADSTONE
$1
per week
($52 per annum)
Sewerage charges will increase across the board by $1 per week (except for Seventeen Seventy and Agnes Water) as follows:
BOYNE/TANNUM/CALLIOPE
$1
per week
($52 per annum)
1770/AGNES WATER
=
No change
Service Area
2011-12 Rate
2012-13 Rate
Gladstone
$449
$501
Boyne/Tannum/Calliope
$574
$626
1770/Agnes Water
$874
$874
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Budget 2012-2013
So What’s The Effect On Rates? continued WATER CHARGES
per week
($29 per annum)
M’VALE/BOROREN SCHEME
WATER ACCESS CHARGE (operation, maintenance and upgrading of the network) The water access charge will increase by a maximum of 60 cents per week in the respective schemes as follows:
per week
($37 per annum)
40¢
=
No change
11¢
1770/AGNES WATER SCHEME
25¢
WATER CONSUMPTION CHARGE (per kilolitre charge for water per kilolitre consumed) To reflect the cost of water charged by the Gladstone Area M’VALE/BOROREN SCHEME Water Board, under a pricing mechanism independently received by the Queensland Competition Authority the overall cost of water with the Lake 1770/AGNES WATER SCHEME Awoonga Scheme decreases from $1.95 to $1.55 per 1000 per kilolitre litres, representing a decrease of 40¢ per kilolitre. Gladstone Regional Council will pass on this charge to its consumers. The water consumption charges in the Seventeen Seventy/Agnes Water operated schemes will see an increase of 11c per kilolitre. LAKE AWOONGA SCHEME
LAKE AWOONGA SCHEME
56¢ 71¢
per week
($13 per annum)
SCHEME
2011-12 Rate
2012-13 Rate
SCHEME
2011-12 Rate
2012-13 Rate
Lake Awoonga
$288
$317
Lake Awoonga
$1.95/kl
$1.55/kl
Miriam Vale/Bororen
$373
$410
Miriam Vale/Bororen
$3.50/kl
$3.50/kl
1770/Agnes Water
$441
$454
1770/Agnes Water
$3.44/kl
$3.55/kl
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Budget 2012-2013
What’s Been Funded? - Highlights 2012-13 CORPORATE & COMMUNITY SERVICES • Gladstone Entertainment Centre Precinct Expansion - $21 million (Council proportion). • Harvey Road and Palm Drive sport precinct developments - $6.5 million (subject to funding from Gladstone Airport Corporation for Clinton Park). • Boyne Tannum Sports Park Development stage one - $2.6 million. • Gladstone Aquatic Centre redevelopment, including water play park featuring water activities, toddlers pool, adult viewing area - $2 million ($1 million carried over from 2011-12 budget). • Stage 1 of the Chapman Park, Bunting Park and JS NeillBallantine Park development, including establishment of Calliope Junior Soccer Club fields at Chapman Park - $1.9 million. • Discovery Coast Community Health Service - $1.05 million. • Replace heating system for Gladstone Aquatic Centre indoor pool - $480,000. • Gladstone City Library book purchases - $370,000. • Re-upholster Gladstone Entertainment Centre auditorium seating - $232,000. • Gladstone Home Library Service - $166,000. • Community Arts and Cultural Projects - $121,000. • Upgrade ceiling in Gladstone Entertainment Centre theatre auditorium - $120,000. • Housing support programs (including LNG funds) - $2.7 million.
• Recoverable infrastructure works projects to be conducted on behalf of Department of Transport and Main Roads - $4.5 million. • Bridges, jetties and boat ramps inspections and maintenance including Blain Drive, Matthew Flinders Bridge and Euleilah Creek Bridge remedial works - $1 million. • Assess and plan for a resource recovery area for Benaraby Landfill - $100,000. • Develop a design concept for an upgraded waste facility at Agnes Water - $50,000. PLANNING & ENVIRONMENT • Park maintenance and improvements - $9.6 million. • Upkeep of public amenities through region - $1.79 million • Construction of a new animal pound in the Gladstone area - $1 million. • Strategic Planning: $900,000 to accelerate the progress of the Our Place Our Plan single planning scheme for the region. • Conservation measures - $740,000. • Cemetery upgrades including stage one works at the new Calliope cemetery - $670,000. • Implementing long and short-term economic development strategies - $500,000. • Tondoon Botanic Gardens maintenance work - $540,000. • New playground equipment at Briffney Park, Kooyong Park, Turkey Beach Park, Lions Park Gladstone, Bunting Park, Isle of Eden and Clinton Park - $323,000. • Mosquito and fly control - $205,000.
ENGINEERING SERVICES • Flood restoration works to return the region’s Council controlled roads to pre-flood 2010-11 condition – estimated $44 million. • Water and sewerage works including upgrades to the Gladstone Waste Water Treatment Plant and Miriam Vale Water treatment plants, and the pipeline to Curtis Island - $51 million. • Road works, including Lowmead Rd upgrade and gravel road resheeting, asphalt overlay and bitumen reseal projects throughout region - $11.65 million. • Stormwater drainage maintenance and renewal projects, including causeway extension at Marsh Road, Wooderson, Colosseum Creek Causeway replacement and upgrade - $7.5 million. • Water upgrades including new Boyne Island storage facility and planning for additional storage facilities at Benaraby, Calliope and Gladstone - $13.9 million.
• Upgrade waste water treatment system at Bororen Memorial Park - $80,000. • Chemical subsidy to assist land owners battle noxious weeds - $80,000. • Declared pest control: Construct a wash down bay at Agnes Water and bitumen works at the Calliope washdown area $65,000. • Survey and design for the redevelopment of Lions Park in Miriam Vale - $50,000. • Barney Point redevelopment stage one carparking and stormwater drainage - $50,000. • Path upgrade at Tranquility Walk Miriam Vale - $50,000. • Solar lights at Anzac Park and Lowmead Park - $30,000. • Purchase and installation of food warning gates at Calliope River day use area (southern side) – $20,000. • Erosion control at Tannum Sands Beach access - $20,000. Page 7