Plains Producer
$1.50
Wednesday, May 29, 2013
STAR OF THE NORTH
USER PAYS! This is the reason why your rates will jump 10.5 per cent for the next two years
RATEPAYERS are expected to fund a huge revenue boost that would return Wakefield Regional Council back to a surplus budget by the 2015/2016 financial year. The massive income kick proposed in council’s draft Long Term Financial Plan (LTFP) is also expected to support a major increase in service levels, particularly on road construction and maintenance. The LTFP was endorsed by WRC elected members to go to community consultation at last week’s council meeting. In its bid to address dwindling road quality in the area, WRC is looking to invest $9.3 million on road construction in the next 10 years, an increase of 40 per cent, while a further $2.35
Les Pearson reports: million (17 per cent increase) will be spent on road maintenance (see separate story inside). Coupled with a concerted effort to overcome debt levels between $5-$6 million, according to the LTFP ratepayers can expect rate increases of 10.5 per cent in 2013/14 and 2014/15. This will be followed with a 9.5 per cent rate increase in 2015/16, 6.5 per cent in 2016/17 and 2017/18, with rate increases reducing to 4.8 per cent from 2019/20 onwards. The rate revenue rise would also fund the building of a $2.2 million works depot in Balaklava, which includes the relocation of the town’s waste transfer station (see separate story
inside). Community buildings and recreational facilities would be more beneficiaries, attracting an additional $643,000 (up 50 per cent) for renewal and maintenance. Council has budgeted for an operating deficit of $2.25 million this year. This is likely to change after the Federal government’s recent advice that it will retain early payment of the Federal Assistance Grants. However, the deficit still will be significant, at about $1.15million. Council also took a hit when $235,000 was spent recently on the Rural Property Address signage project. Councillors had much to say on rates and the financial plan. n Continued Page 8
Roads take 42% of total WRC income ? Why is it so ceo Cate atkinson explains:
WRC CEO, Cate Atkinson, says council has been trying to meet increased demands without the funds to do it. “When council reviewed its rating approach, it was clear it had fallen behind other councils in the region and of similar size,” she said. “Costs have also escalated and a conservative rating approach does not keep up with the cost of doing business.” Roads consume 74 per cent of rates – or 42 per cent of total income (taking into account grants, statutory charges and user charges). In response to our question as to why we are at this point, Mrs Atkinson said: “Council has taken a proactive approach to assessing all of its roads over the last couple of years and now has a much more accurate analysis of their condition and what is needed to keep them maintained or improved. “Council is taking its financial sustainability seriously and is keen to respond to community need. “In particular, it wants to fund an accelerated program of road maintenance as well as support community infrastructure whilst also achieving a ‘break even’ position.” Mrs Atkinson said council’s LongTerm Financial Plan (LTFP) was a draft proposal which would be circulated for public comment. Advertisements will appear in the Plains Producer with details. n Mrs Atkinson explains the reasoning behind the financial plan on Page 7.
what it means TO YOU: THREE PAGE SPECIAL feature PAGES 7, 8 & 9
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