2016/2017 Budget presentation speech: 21 June 2016
I am pleased to present the 2016/2017 Greater Shepparton City Council budget for adoption.
This budget builds on our Council Plan 2013-2017 vision which focuses on the following five key areas:
• Active and Engaged Community (Social)
• Enhancing the Environment (Natural)
• Economic Prosperity (Economic)
• Quality Infrastructure (Built)
• High Performing Organisation (Leadership and Governance).
The Council Plan 2013-2017 (Year 4) sets out our strategic plan to deliver our vision over the full term of the Council. As this is the final year of the current Council term, the focus over the next year will be on completion of our current commitments.
As we are in the final year of this plan, finalisation of this plan will set the foundation for the next Council plan, to be developed and adopted by the next Council after the election later this year.
The proposed budget details the resources required over the next year to fund the large range of services we provide to the community. It also includes details of proposed capital expenditure allocations to improve and renew our municipality's physical infrastructure, buildings and operational assets as well as funding proposals for a range of operating projects.
As Councillors, it is our job to listen to community sentiment and understand your priorities. Since we started our term in 2012, we have consistently heard that Council’s services are valued by the community, and that Council also needs to be financially responsible and keep its rates as low as possible. In response, Council has initiated an enterprise wide approach to identify savings or alternative sources of income to provide increased value for money to ratepayers. Council will, with the introduction of rate capping in 2016, continue to focus on identifying sustainable cost savings that will enable it to deliver high quality, responsive and accessible services to the community.
The budget proposes a rate increase of 2.5 per cent. This is in line with the new Fair Go Rates System (FGRS) which has capped rates increases by Victorian councils to the forecast movement of 2.5 per cent in the Consumer Price Index (CPI). This is lower than the 4.95 per cent projections contained within Council's 2015/2016 Strategic Resource Plan. Council chose not to apply to the Essential Services Commission (ESC) for a variation in year one of rate capping, instead we focused on identifying operational savings and efficiencies to align with the proposed 2.5 per cent increase.
However the cap only applies to the total income received from the General Rates and the Municipal Charge; it doesn’t apply to the Garbage or Organics charges or the Fire Services Levy. Individual property rates alter depending on the movement in their value.
So, while there is a cap, if your property value changes through the revaluation process, if you have different garbage services to last year, or if the Fire Services Levy increases, then you may see an increase greater than 2.5%.
If anyone is interested in learning more about our rating system, valuations or rate capping, there are three videos, available through Council’s website which explain these concepts in an easy to understand way (please see below).
This close attention to our cost base in the preparation of the budget document has enabled us to consider a budget that ensures a sustainable financial position for this Council. I am proud of the fact that not only does this budget forecast and operating surplus of $10m, we are fully funding our capital renewals, have a healthy cash balance and a liquidity ratio that is at a risk level acceptable to VAGO.
The budget, proposes a capital budget of $43.49 million with $24.9 million allocated for renewal, $14.7million allocated for new capital works, $3.31million allocated for upgrades and $600,000 allocated for expansion works.
I would like to highlight some key capital works projects from across our municipality. These projects show Council’s commitment to growing our municipality and working with our communities on projects which have significant importance in each area.
• Dookie
o Dookie Rail Trail – detailed design $35k
• Kialla
o Kialla community centre refurbishment $200k
o Kialla Lakes BBQ and shelter $31k
• Merrigum
o Pool splash equipment $84k
o Pool sand filter & pump renewal $43k
o Pool shade structure renewal $26k
• Mooroopna
o Mooroopna rec reserve lighting $366k
o Ferrari park play space shade structure $60k
o Mooroopna pool shade structure $19k
• Murchison
o Murchison gardens shade structure $60k
• Tallygaroopna
o Walking/cycling track detailed design $52k
• Tatura
o Lake Bartlett Circuit Path $157k
o Tatura Park air-conditioning $52k
• Greater Shepparton
o Cosgrove Landfill $10.69m
o Regional Sports Precinct $7.71m
o Roads to Recovery Program $4.88m
o Verney Road stages 2 and 3 $1.88m
o CBD Revitalisation $300k
I would also like to highlight the important community engagement element of the budget process. We heard from 17 individuals/groups regarding the draft budget and received more
than 50 submissions in total. It was great to see so many people taking an interest in the process and putting forward strong cases for additional projects to receive funding.
All the projects put forward by the community were considered as part of the final budget and will be considered in the future. The submissions we received show that these projects are very important to the community and we have some very passionate community members working hard on behalf of their community. Regardless of the outcome, everyone should be very proud of their efforts in preparing their submission and presenting to Council, which can be daunting. This project shows that Council listens to our community and we can work together for mutually beneficial outcomes.
I would finally like to thank all the staff who put hours of work into the process to develop the budget, from back in January when budget presentations occurred, through to preparing the draft budget for community consultation and finally making those final changes to get the document ready for adoption. Your efforts and answering many questions from Councillors through briefings and meetings is very much appreciated.
What is presented for adoption this evening is a financially responsible budget which achieves a balance between wants and needs in order to efficiently manage our resources and provide high quality services and infrastructure to our community.
Thank you…
