By JONATHON HOWARD
NOOSA Council has revealed its budget statement and capital works expenditure for the first quarter of the financial year as councillors debated the prospect of a general rate rise.
The financial records were passed into council during the general committee meeting at the Noosa Council Chambers on Monday 17 November.
Barring Cr Sandy Bolton, all councillors attended with Cr Tony Wellington chairing the meeting.
Council’s CEO Brett De Chastel said the budget statements were positive and addressed community concerns around council’s financial viability.
However, several residents have already attacked the council’s lack of capital works expenditure including the stalling of the Munna Point Bridge upgrade.
The council set a budget of $1.4 million in stage two of Munna Point Bridge, which is now overdue for repairs, but has only spent $3518 or 0.25 per cent of the required budget.
Noosa Parade Munna Point Bridge investigations progressed slightly with a budget of $185,100, but the works are only 3.09 per cent completed.
The capital works schedule shows a severe slowing of repairs and upgrades across the shire from the $23.9 million works budget allocated, of which only $2.22 million has been spent, or a total of 9.27 per cent.
Both Pomona Cemetery (niche wall) and Tewantin Cemetery (concrete beam) require $13,000, but have received zero dollars to date.
Environment assets, bushland, tracks and trails have also come up short, with only 0.08 per cent spent of the budgeted $289,000.
Waste management has also stalled with zero per cent progress on the budgeted $793,900 for the Noosaville Landfil bio basin, sediment control and stormwater.
Council did progress with coastal canals and waterways with the completion of the Noosa Waters revetment walls stage 2a, at a cost of $47,000, which is now 100 per cent completed.
Although it is only the first quarter of the new financial year, council would normally aim for a target of around 25 per cent capital works per quarter completed in order to achieve its goal by the end of the 2014/15 financial year.
Cr Frank Pardon said he was concerned with the progress of the capital works schedule as well as road re-surfacing around the shire.
Council staff addressed Cr Pardon’s and community concerns and said capital works would be accelerated and should begin to progress more by June 2015.
The financial projections also raised the prospect of a general rate rise next year, which was pointed out by Cr Bob Abbot.
Mr Abbot asked for clarification around the potential for rate increases and said any long term comparisons of council’s budgets needed to consider potential changes.
However, CEO Brett De Chastel and mayor Noel Playford said the figures were a guide and could accommodate change.
Mayor Playford said the figures presented before council showed a financially strong council that was able to withstand the advent of any future financial pressure.
Council staff said it was anticipating that any future rate rise would be in line with the consumer price index (CPI) of between 2-3 per cent, including growth of around 0.4 per cent.
However, Mr De Chastel stressed that the current financial models were “not giving councillors a projection of rate rises”.
Council’s statements showed an operating surplus ratio of 0.0 per cent next year, 1.7 per cent in 2015 and 2.6 per cent in 2017 – all within targets.
The net financial liabilities ratio, which measures the financial liabilities of council repaying operating revenues, showed 2.1 per cent next year, -0.3 in 2016 and -3.6 in 2017.
The asset sustainability ratio, which is the ratio that reflects the rate which infrastructure assets managed by council are being replaced, shows council is on track with 103.6 per cent in 2015, 104.3 per cent in 2016 and 105.7 per cent in 2017.
The final vote on the budget was expected during council’s ordinary meeting at Peregian Beach on Thursday 20 November.
