Budget - Rates freeze relief for Townsville residents, businesses
Date published: 6 July 2016
Townsville Mayor Cr Jenny Hill today handed down a City Budget that eases cost pressures on the community with a rates freeze, and delivers essential projects for the city’s progress.
The zero increase for general rates and utilities – water, sewerage and waste charges - fulfils a core promise from Cr Hill and her team in the new council’s first budget.
“The freeze on rates highlights that the community comes first. This will provide all ratepayers including the city’s businesses with financial relief at a time when every dollar counts,” Cr Hill said.
“There was also considerable pressure on the council to introduce a drought levy to fund the cost of pumping water from the Burdekin, but we have categorically said no to this option.
“Rather than pass on that cost, we believe the council’s financial position is sound enough to record a one off operating deficit that again takes pressure off ratepayers during tough economic conditions in our community.
“The zero increase in rates and charges, combined with the priority spending on key major projects, is the most effective way we can support our community and provide an economic stimulus for the city.
“We have made targeted cutbacks focusing on non-essential areas, and prioritised the delivery of front line services and important capital works. With record unemployment and a once in a generation drought, this is the year where we have to make especially tough decisions on priorities."
The council has launched a review of the management structure to streamline council operations and work will be on-going to meet a $5 million efficiency target in the budget.
This year’s budget has been hit by $23 million in additional financial impacts from electricity increases, pumping water from the Burdekin, and falls in revenue from development applications and contributions.
Budget savings of almost $14 million have been made through cutbacks across the board including external labour hire, special events and accommodation and travel.
The budget includes a deficit forecast for a worst case scenario of $6.7 million, which allows for the cost of pumping from the Burdekin until the middle of next year. Rain in the catchment and a reduction in pumping during the wet season is expected to result in a much lower deficit figure.
Council forecasts a return to surplus in 2017/18. Today’s budget follows an expected $9.2 million surplus for the 2015/16 year.
The 2016/17 budget will increase debt by $40 million to fund a $205.2 million capital works program that will deliver income producing infrastructure to support construction and the city’s growth.
Major projects funding includes $21.1 million for the CBD Utilities Upgrade, $3.68 million for advanced planning for the Haughton Pipeline Duplication, $5 million for Stage 2 of the Townsville Recreational Boat Park, and $4.13 million for the Southern Suburbs Rising Main.
Roads will benefit from $31 million in projects on 129 streets across the city.
The capital works also includes $35.5 million in projects to upgrade and renew the city’s water and sewerage networks and a $114.7 million budget for the management of public parks and infrastructure.
Attracting investment and development in the Waterfront PDA area in the CBD is also a big focus.
The budget includes $3.27 million to design the first stage of the Waterfront Promenade along Ross Creek, and $100,000 for a developer EOI to build the arts and cultural precinct, and $100,000 to develop a concept plan for the vacant North Yards.
The budget also includes $5.59 million for the pensioner concessions on rates, and funding for T150 Defence Force Air Show and Townsville Bulletin Sky Show on October 15.
