community update Issue 6 – August 2011
Mayoral Budget Statement 2011-12 The Western Downs region is recognised as one of Queensland’s strongest growing economies. Council’s aim is to manage and sustain this growth for the continued prosperity of our local businesses, industries and communities. We have faced a few challenges in developing our budget this year including:
Strategic approach to rebuilding, growing and serving our region Welcome to the special budget edition of our Western Downs Community Update. With our region still recovering from the significant impact of the natural disasters of 2010 and early 2011, this year’s budget process has been a difficult one. We have taken a strategic approach to the way we rebuild, grow and service the Western Downs. Our goal is to deliver appropriate levels of service to all communities with financial sustainability, while tapping into the opportunities for economic growth through the vibrant industries in our region. I’m proud of our region and excited about the initiatives and the 205 new capital projects Council has planned for this financial year.
• our need to achieve a fair and equitable rates system across all Western Downs communities (rating parity), • n ew land valuations which took effect in July 2011 and for the first time provided “site values” as the basis for rating in urban areas, • a significant operational deficit due to increasing asset depreciation expenses, • g rowing impact of energy sector development on Council operations and infrastructure, • i ncreased costs of operations including wages, insurance, fuel and electricity, and • costs associated with the introduction of a new State Government waste levy. Council currently manages an asset base of more than $1.4 billion with estimated depreciation expense of $46 million per annum. To provide us with a higher level of confidence in the way it manages
assets and depreciation, WRDC will be developing asset management plans during the coming year. Council was very pleased to work closely with the community to establish its first Community Plan (in 2010/11). This plan will provide direction to Council as it develops a new Corporate Plan over the next six months. The new Corporate Plan, along with our new asset management plans, will provide strong guidance for Council as it strives to achieve a sustainable financial position in the medium to long term. I invite you to take some time to read through this update and learn more about Council’s plans for the region and commitment to achieving a positive outlook for the people of the Western Downs.
Ray Brown Mayor
Cr Ray Brown
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Where does the money come from…and where is it spent? Council budgets are funded through a number of different sources. Rates make a vital contribution to the revenue and Council also raises money through other means to help fund community infrastructure and services. Revenue is carefully managed to fund Council’s expenditure budget. The expenditure is broken into two broad categories – operational and capital. The operational expenditure budget is required for the day-to-day running of all the services, facilities and requirements of the region. This includes maintenance and operation of facilities such as the aquatic facilities, community halls, libraries, street lighting, parks and gardens, waste disposal, roads, streets and bridges. A total of $122.4M has been budgeted for operational expenditure which includes employee costs, materials and services costs and depreciation. Of the operating budget $46M is asset depreciation expense. As outlined in the Mayor’s summary, Council is developing new asset management plans to ensure optimal management of assets and depreciation.
The Capital expenditure is the total investment needed for the renewal and expansion of the community infrastructure assets for which Council is responsible and the repayment of loans. This year, Council has allocated a total of $109.7M for capital works. This includes carry-over projects totalling $35.2M (funded in previous years but not completed in many cases due to the extreme seasonal conditions). Revenue sources to support expenditure for the year are expected to include rates and utility charges ($44.3M), operational grants and subsidies ($21.5M), fees and charges including commercial works ($27M), funded depreciation ($19.9M), capital grants subsidies and contributions ($65.6M), new borrowings ($9.6M), other capital revenue ($2.4M) appropriations from reserve ($14.5M) and other revenue ($3.9M). Based on predicted operational expenditure and revenue it is expected that there will be a resulting operational deficit of around $25.7M.
2011/12 Budget Where does the money come from? (Millions) Captial reserve funds $14.50M
Capital grants, & subsidies, $65.60M
Net rates & utility charges $41.35M
Western Downs on Drayton Plans are on track for the two Dalby offices of Western Downs Regional Council to be merged into one location on the corner of Drayton and Marble Streets later this year. The move will result in a more streamlined service to customers and closer access to the Dalby CBD. The move also makes way for an exciting new growth opportunity for the Western Downs Dalby Library service with funds allocated in the 2011/12 budget for the relocation of the library to 107 Drayton Street. The location, with library, cinema and art gallery will become recognised as a cultural and leisure precinct.
2011/12 Budget Where does the money go? (Millions) Investment in infrastructure (capital) $109.76M
8.25%
Employee/Councillor costs (recurrent) $34.76M
14.98%
Finance costs (recurrent) $1.33M – 0.57%
23.53% Fees & charges $4.47M – 2.54%
37.34%
47.29%
19.83%
12.68% 11.22%
Other recurrent income $2.12M – 1.21% Rental income $3.90M – 2.22% 2
16.95%
Sale of major services $22.28M
Asset depreciation (recurrent) $46.02M
Operational grants, subsidies, contributions $19.71M Interest received $1.77M – 1.01%
Repayment of borrowings (capital) $0.90M – 0.39%
Materials & services (recurrent) $39.33M
New plant to quench Tara’s thirst
Funding floods in for restoration work A key challenge for Council has been the impact of the extensive wet weather and record flooding which has had a disastrous effect on the economy of the region. The cost to rebuild and restore council assets and services following the summer flood damage is in the vicinity of $90M. Thankfully, all but a small amount of the $90M bill is expected to be met by the Federal/State Government Natural Disaster Relief and Recovery Arrangements (NDRRA). This funding will go towards restoring community facilities owned by the council such as roads, parks and sporting grounds. Due to the amount of damage, the structure of the funding and the timeframes for completion, Council will use a percentage of private contractors to help complete these flood damage repairs.
The work required to repair Marble Street (between the Myall Creek and Dalby Shoppingworld) has been listed as a high priority and WDRC has asked the Queensland Reconstruction Authority to assess these repairs separately as a matter of urgency. Once funding approval is granted, the project will go to tender allowing the restoration works to commence as soon as possible this year. While the summer floods of 2010/11 are still top of mind, there is actually repair work being undertaken that was required following flood events dating back to February 2010. Flood restoration funding of $4.7M was allocated by the Federal Government just a few months ago to help Council pay for repairs such as re-sheeting gravel roads, drainage works and other damage. Council would also like to take this opportunity to thank the community for its patience and cooperation during this difficult time. There is much work to be done to rebuild, but we are confident that the planning we have done and the allocations in this budget will see us well-placed to achieve positive outcomes for the community.
The need for a more reliable long term town water supply has seen Council allocate over half-a-million dollars to investigate, design and commence construction of a reverse osmosis (RO) treatment plant for Tara. Tara’s current water treatment plant sources water from a lagoon which relies on water harvested from overland water flow. In dry times, the town has required its water supply to be augmented by bore water. By upgrading to RO technology, Tara will have the option to source most, or all, of its water from its approved underground allocation. RO plants, like the one installed near Dalby, allows salt to be removed from underground bore water to produce high quality drinking water. The funds allocated in the budget will allow Council to investigate the purchase of land and the installation of a pilot plant to test the RO process to come up with the most cost effective treatment options for the Tara community. It will take some time and money to do the pilot testing, but this is an important step in ensuring that the best long term outcome is achieved. This will result in the development of plans for the RO plant in Tara with construction expected to commence late in the 2011-2012 financial year. 3
Your rates explained Rates (and utility charges) are an important component of Council’s budget, contributing about 25% of Council’s total revenue. Understandably as Council costs increase, so too do rates and charges need to increase. However Council recognises the pressure our constituents face with the cost of living, so every effort has been made to keep the rate increases at a low rate. Council was particularly mindful of this in the aftermath of the devastating flooding which has had a profound effect on the economy of the region.
increase by 6.2% ($1.86M) on last year.
Council has made a commitment to achieve rating parity (equitable rates for all communities in the region) by 1 July 2013. This budget will see Council take a further step towards this goal.
Water Charges, Sewerage Charges and standard Waste Collection Charges will all increase by 3%.
This year rate revenue from the “traditional” ratepayers (such as rural, residential, business and commercial) will, on average, increase by a total of 3%. Rates on properties associated with the expanding intensive industry, resources and energy sector (such as oil and gas extraction, coal mining, power stations) will increase by around 10%. Overall, general rating revenue to Council will
The increase in general rates for individual properties will vary depending on the movement in rateable value for the property and the effect of movement toward rating parity throughout the region. Council will again employ the three (3) year average valuation as the rateable value to mitigate the effect of the large valuation increases across the region which took effect from 1 July, 2010.
Due to the costs associated with the forced implementation of new State legislation, a higher waste collection charge will apply to non-domestic users from 1 January 2012. Ratepayers are levied twice a year (usually August and February) and Council offers a 10% discount on most rates and charges when paid by the due date. If you have any questions about your rates, please contact 1300 COUNCIL.
2011/12 and 2010/11 Gross Levy By Rate Group
$2,000,000 $Residential
$3,468,881
$3,368,631
$4,000,000
Commercial/ Industrial
2010/11 Gross Levy Proposed 2011/12 Gross Levy 4
$7,286,842
$6,692,799
$6,000,000
$9,482,818
$8,000,000
$9,204,686
$10,000,000
$11,362,049
$11,027,425
$12,000,000
Rural
Intensive Industry
Rate relief for pensioners Pensioners are getting some extra relief this year, with Council agreeing to match the State Government’s Pensioner Rate Subsidy Scheme offering eligible ratepayers a potential saving of up to $400 per year. WDRC is one of the few councils in the State that continues to match the State Government remission dollar-for-dollar. Previously set at $180, the subsidy has been increased this year to $200. Under this scheme the state government grants a 20% remission on rates up to $200 per year. Council will grant a further 20% subsidy capped at $200.
Waste not, want not … with Dalby’s new waste centre Council’s commitment to a better approach to rubbish is being delivered through a series of major improvements for waste management services and facilities across the Western Downs. The first of these is the new Dalby Waste and Recycling Centre – a flagship facility that will set a new standard in waste management. Located just past the Kogan turn-off on the Warrego Highway, this new facility is designed to maximise the region’s efforts to recycle, reuse and add value to materials received and minimise left over wastes requiring landfill disposal. It will be a transfer station which means left over waste will be transported to an approved landfill facility. The new Centre, set to be completed next year, will provide: • Safe, sealed under-cover vehicle access to receive wastes brought to the facility, • The ability to recover, recycle and reuse waste materials deposited at the transfer station area, • Segregated drop areas for recyclables and difficult to manage waste, • An undercover reuse and resale shop,
• Bulking up residual (left over) waste into large transport containers for haulage to landfill. The development of this new Centre is part of the regional Waste Management Strategy “Towards a Waste Wise Western Downs” and was made possible by the successful grant application to the State Government for $3.75M funding; with the total costs of the facility expected to be $4.6M. Dalby’s current landfill site will soon run out of capacity and will be decommissioned and rehabilitated over the coming years.
New waste levy adds unwelcome costs While Council starts rolling out its planned waste management improvements, a new compulsory Waste levy is to be introduced by the State Government on December 1. WDRC is opposed to the levy which will force local businesses to pay $35 for every tonne of construction, demolition, commercial and industrial waste, with additional costs likely to be passed on to patrons.
• Bulk recycling areas for drop-off and diversion of concrete, green waste and steel,
The new law means Council will be legally forced to collect the levy for the State Government.
• Weighbridge and site control facilities,
To meet the requirements of this new levy
Council will require significant additional expenditure to upgrade local waste disposal facilities. Council has plans in place, through its regional strategy, to upgrade its waste facilities in a considered and financially responsible manner. However this new law ultimately impacts on the WDRC budget, placing an extra burden on ratepayers. Additional operational costs include waste facility opening hours, onsite supervision and security at waste disposal facilities in the region where such supervision was not previously warranted. The new waste levy may also impact in terms of additional resources including people to collect fees, additional audit requirements and the need to improve security at Council’s 22 waste facilities. In light of this new legislation, an internal review of current and planned infrastructure is underway. This may result in some changes to the scale, scope and number of facilities throughout the region to balance the existing and new state government requirements, practical funding and community needs. WDRC continues to call on the State Government to reconsider the levy or to bring forward the funds expected to be generated from the new levy and cover all of Council’s costs to administer and manage the new levy requirements.
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Population prediction Over the period to 2031, the population of the Western Downs Region is expected to increase by 11,699 persons – or an average annual rate of 1.4% – to a population of approximately 42,568 persons. Anecdotal evidence suggests even greater growth, likely surpassing Queensland’s average annual growth rate of 1.7% for the same period.
New community hub rings true for Bell
New centre to make a big splash
More to make Wandoan home
Bell’s cherished position as a tourism icon, cultural hub and a unified community will be enhanced thanks to the development of the Bell Bunya Community Centre. Construction has commenced on this single storey multi-use centre which will accommodate the needs of the Bell community and surrounding areas.
The historic Dalby Swimming Pool in Patrick Street, originally built in 1936, is set to embark on a new era with the development of a $4.62M state-of-the-art Dalby Aquatic Centre to be located alongside the existing 50 metre pool.
There is no denying the growth of the energy resources sector is adding pressure to the region’s housing. With a view to securing an adequate supply of affordable housing into the future, Council has made the decision to purchase a 24.6Ha portion of land in Wandoan with a view to developing an affordable residential estate.
Council has allocated $1.3M towards the centre. It’s expected to incorporate an art gallery with studio, tourist information centre, communal office, community health rooms, public and disabled amenities, lock-up garage, a commercial standard kitchen, storage areas, a portico and verandahs. The facility could also potentially provide space for Western Downs Bell Library Service which is currently operating out of the Bell State School.
Council is planning to construct a new 25 metre indoor heated pool facility on the vacant block of land at the rear of the current pool. It will feature a host of environmentally friendly characteristics. Set to become an iconic regional leisure facility, the Aquatic Centre will have a range of functions including learn-to-swim classes, year-round swim training, fitness and health rehabilitation.
There will be ample parking space and easy access for tourist coaches, group tours, cars and caravans.
Access to the Aquatic Centre will be from the Anzac Park and Scarlett Street carpark with 30 additional car spaces, access footpaths and ample lighting.
Local contractors Heinemann Builders has been appointed to construct the project which is located in the Bell community and sporting precinct near the Bowls Club.
The project has been made possible thanks to a State Government infrastructure grant and will become a valuable recreational facility for the whole community to use.
The project has had a long history and has been driven by the local community based steering committee. Council has worked closely with this committee to help deliver a facility set to become a one-stop-shop for community services for Bell and its visitors when it opens late this year.
The final drawings have been completed and the development application approved. Tenders are currently being assessed with construction expected to commence on site in September. The new centre should be open for swimmers during 2012.
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This land acquisition, along with other Council funded residential land developments in Wandoan and Jandowae, comes as Queensland Gas Company funding of $200,000 will be invested by Council in the development of a Western Downs Regional Council Housing Strategy. The strategy will assess the current situation and provide a planned approach to meet the region’s future housing needs. Council sees this as a proactive approach to the issue of housing and is working with the major energy proponents to ensure the strategy can be effectively delivered. Young families and seniors have been identified as priority groups. Preventative measures, such as land and housing developments across the region, will aim to reduce the need for social housing by providing housing at prices that low income earners can realistically afford.
Revamp to create Saleyard of the Century The largest single day selling centre in Australia, with its 100-year history, the Dalby Saleyards has been at the heart of a year-long review process which has resulted in Council making the decision to put more than $10M into rehabilitating and redeveloping the site over three years. After extensive consultation, WDRC made the decision in June that it would continue to own and operate the Saleyards and put in place plans for a three-stage redevelopment of the existing saleyards site. In this year’s budget, Council has allocated a capital investment of $700,000 for stage one which will address and improve immediate workplace health and safety issues at the facility. This includes rail and ramp upgrades, lighting and other general improvements to bring the facility up to modern industry standards. Council is seeking expressions of interest from private enterprise for the development of a washdown bay to be located close to the saleyards. A suitable washdown bay would add value to the Saleyard allowing the opportunity for the facility to achieve quality assurance accreditation and registration for the EU market. Council has worked closely with stakeholders
to develop a saleyards master plan which recognises the changing operational environment and the importance of the Dalby Saleyards to the region’s economy. Council looks forward to continuing work with stakeholder groups to facilitate this exciting redevelopment over the next few years.
A Tourism Brand For Western Downs To enhance our region’s profile in an increasingly competitive tourism market, Western Downs Regional Council has developed a Tourism Brand. The brand features a simple but strong statement, ‘Our Western Downs’, which encapsulates the pride we feel about our home and the pleasure we experience in sharing it with others. The graphic component of the brand is an abstract representation of our region, with each of our principal towns and surrounding communities depicted by a colour of significance eg. the watermelon colour assigned to Chinchilla and district is representative of their unique Melon Festival. For a more detailed explanation on our new Tourism Brand, please visit www.wdrc.qld.gov.au.
New Regional Projects and Initiatives The 2011-2012 budget includes a wide range of projects in all areas. The following new projects and initiatives are planned for the entire region: • Fleet/Plant Replacement Program - $7.8M • R egion-wide IT/Business Systems and Technology upgrades • Fencing Project for high priority landfills • P ost closure care for recently closed landfills (Jimbour, Brigalow) and those potentially closing • R egional Showgrounds - major project work to be shared across the region’s seven showgrounds ($20,000 each) • C ontinuation of the development of a new Regional Planning Scheme •D evelopment of a new Corporate Plan to align with the priorities and themes of the recently completed Western Downs 2050 Community Plan • E stablishment of Asset Management Plans for Council’s core asset groupings. It should be noted that projects/initiatives funded last year but not completed will, in most cases, be carried forward for completion in the 2011/2012 year
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Projects and Initiatives for CHINCHILLA and DISTRICT
Projects and Initiatives for WANDOAN and DISTRICT
Here’s a sample of what’s planned for Chinchilla and district:
Here’s a sample of what’s planned for Wandoan and district:
• Gravel Resheeting and Bitumen Reseals – As per roadworks program • Waste and Recycling Centre, Chinchilla. Front of house facility, with weighbridge for DERM waste levy audit • Construct new water supply rising mains – to cater for developments (funded by developer infrastructure agreements) • Reconstruct sewage pump station D to cater for development and remove existing bottleneck (partly funded by developer infrastructure agreements) • Chinchilla Water Plant – Fluoridation will be required by law by the end of 2012. Fluoride component will be fully funded by subsidy • Chinchilla Aquatic Centre and Gym – Extension of existing gym due to increased patronage by resource workers • Construction of new animal pound (to comply with animal welfare requirements) • Detailed design Multipurpose Sporting Centre • Lions Park Chinchilla – Stage one of three to replace/install playground equipment.
• Construct new water treatment plant to meet proposed development needs (initially funded by Xstrata) • Construct new wastewater treatment plant to cater for growth (funded by Xstrata) • Bitumen Reseals and Gravel Resheeting – As per roadworks program • Construction of a Skate Park for the Wandoan youth activities program • Establish a new two way radio tower to facilitate expansion of Councils two–way radio network into the Wandoan area • Wandoan sewer extensions to service new developments (largely funded by developer infrastructure agreements) • Wandoan Streetscape – Design and planning • Wandoan Pool – Upgrades • Construct new landfill (funded by Xstrata)
Projects and Initiatives for DALBY and DISTRICT Here’s a sample of what’s planned for planned for Dalby and district: • Gravel Resheeting and Bitumen Reseals – As per roadworks program • Dalby Water Treatment Plant – Planning and construction of secondary RO plant concentration stage • Dalby Diplock Park – Solar lighting over Skate Park and relocation of existing toilet block closer to the Warrego Hwy • Dalby sewerage main extension – to service new developments (mainly funded by developer infrastructure agreements) • Extensions to gas network to new customers and to link dead end mains • Kaimkillenbun Hall – Refurbishment of electrical wiring • Warra – 50m of 150mm main replacement including under bore of Warra Kogan Rd – existing main with break history • Jandowae – Upgrade facilities precinct (Squash Court, Gym and Pool area) • Jandowae Water Plant – Upgrade chemical dosing facilities. 8
Projects and Initiatives for TARA and DISTRICT Here’s a sample of what’s planned for Tara and district:
• Miles Transfer Station – Provision of ‘front of house’ • Miles Water – reticulation extensions to new developments and trunk mains replacement to treatment plant • Sewage Treatment Plant – Construct additional evaporation ponds • Pioneer Park Condamine – New play equipment • Miles Centenary Park – Football Oval master plan and telemetry works • Miles Retirement Village – Painting of the interior of three retirement villas • Miles Visitor Information Centre – Purchase and installation of air–conditioning • Condamine Cemetery – Install new fence • Condamine – Install telemetry system for supply of creek water It should be noted that projects/initiatives in all districts funded last year but not completed will, in most cases, be carried forward for completion in the 2011/2012 year.
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• Gravel Resheeting and Bitumen Reseals – As per roadworks program • Tara Memorial Swimming Pool – Major refurbishment • Tara Landfill – Improved on site facilities • Purchase of Land at Meandarra from DERM • Cambridge Crossing Road 8 – 12km – Widen and overlay • Construction of new pound (to comply with animal welfare requirements) • Extension to Tara Lagoon Walkway • Flinton – Water reticulation alterations • Water Treatment Plant – Investigate, design and construct an RO plant for the Tara water supply • Payne Street –Road construction
Contact Council
Projects and Initiatives for MILES and DISTRICT
All correspondence should be addressed to:
Here’s a sample of what’s planned for planned for Miles and district: • Gravel Resheeting and Bitumen Reseals – As per roadworks program • Miles Swimming Pool – Reline main and toddlers pools with fibreglass coating as well as various repairs and upgrades
Calling 1300 COUNCIL (1300 268 264) puts you in touch with WRDC no matter where you live in the region and is managed by a professional contact centre team with officers located in Dalby, Chinchilla Tara and Miles. Our friendly team is equipped to answer all kinds of queries or to quickly transfer you to the right person.
The Chief Executive Officer PO Box 551 Dalby QLD 4405 By E-mail info@wdrc.qld.gov.au Internet www.wdrc.qld.gov.au You can contact WDRC in person at any of our Customer Service Centres.