2019/20 Budget Introduction
Click here to download the 2019/2020 Budget.
Budget Summary from the Mayor
The 2019/20 budget was prepared by operational staff along with Councilors over the past two months through portfolio meetings and a budget workshop. As Council is aware the significant February event this year and subsequent work load has affected many areas of Council’s delivery of operational budget to some extent but mainly identified capital works from the 18/19 FY. To this end there are a number of project carry overs. Additionally the pressure placed on the organisation as a whole has meant whilst normally we would have achieved our budget adoption prior to the 30th of June in advance of the 31st July requirement this has not been possible.
To also meet the Local Government Act 2009 and Local Government Regulation 2012 legislation of providing the budget documents in their entirety to Councillors fourteen(14) days prior to the meeting sees Council proposing to adopt the budget on the 9th of August, nine(9) days outside the 31st July requirement. Approval from the Department of Local Government, Racing and Multicultural Affairs was granted for this timeframe extension.
In relation to this 2019/2020 FY Council has considered carefully the need to maintain strong financial management whilst maintaining services and delivering for community and nominated a rates rise of 2%. This rise is on par with CPI and is required in order for the Council to maintain a strong position and meet rising costs. The rise will be a modest increase in revenue of $145,670 (compared to that of 2018/19) bringing the total rates revenue to $3,029,763. Additionally the special rate levy for Dog Baiting will be charged again this financial year as no funding secured for this program and all the previously collected amounts under this special levy having been expended on this program in 2017/2018 FY. It should be noted that if funding arises and is secured during the year then funds raised through the rates levy will be quarantined for use for the purpose raised in the future.
The Operational budget proposed will see revenue of $34,805,072 and expenditure of $16,578,099 and provide for a positive net result at 30th June 2020 of $18,226,974 available for capital works. The operational services of Council have been maintained in their entirety. The allocation for roads maintenance is $1,230,000 and the McKinlay Shire Roads Strategy along with Councillor and Director discussions has been utilised to inform the operational budget in this area. $11.6m of NDRRA 2018 works will continue throughout 2019/20 and anticipate to be completed by June 2020. The 2019 Disaster Recovery Arrangement Funding submissions for flood damaged roads is continuing to made, with one approval received to date and two other submissions being assessed by QRA. 2019 budgeted flood damage restorations total $5.4m for this financial year.
The Capital Works proposed has revenue of $9,404,862 and expenditure of $14,197,890. As stated above there are carry over projects from the 2018/2019 FY which if taken out put the total Capital Works expenditure at $12,188,304. In total Council will be reinvesting $3,613,809 own source revenue into Capital Works. The Capital Works program is financially responsible providing economic and community benefit.
A snapshot includes but not limited to -
- New DIP and Yards (funding required)
- New paving in Burke Street Julia Creek focusing on areas not already paved
- Water Tower renewal and new Bore Julia Creek
- Kynuna Water upgrades-carry over
- Innovation Hub-carry over
- Caravan Park- Spa baths, Bush Kitchen and landscaping –carry over
- Julia Creek Community Events Precinct-Carry Over
- Amongst many others
- Capital Expenditure on roads utilising programs such as Roads to Recovery, Transport Infrastructure Development Scheme and own source funds includes (not DRFA)-
- Additional seal Gilliat/McKinlay to join short sections on the Northern end
- Commence seal Combo Waterhole (fully funded externally)
- Upgrades to Burke Street seal and kerb and channel
- Upgrade portion Byrimine Road gravel only
- Betterment-Taldora Road causeways
Council is proposing to maintain a strong reserve of $1.5 million dollars allocated as per below, an increase of $100,000 and includes an new reserve to begin allocating dollars for a potential new childcare hub within the coming years -
HACC $ 40,000
Roads and Reseal $800,000
Culverts and Bridges $ 60,000
Water and Sewage $250,000
Childrens Services Hub $250,000
Overall this budget ensures that good financial management is maintained along with continued capital improvements to primary roads and infrastructure as well as future planning. All services to community are maintained and the rates rise of 2% will ensure sustainability for Council for the coming year. Council was considerate of both the February event and ongoing drought declaration of the shire in preparation of the budget and will continue to monitor the financial well being of the community in the coming months.
Cr Belinda Murphy - Mayor