2008/2009 Council Budget is about balance

Toowoomba Regional Council’s first budget aims to lay the foundation of responsible fiscal management for the future without exorbitant rate hikes.

Financial Services spokesperson Cr Mike Williams said the 2008/2009 budget had been an exercise in unifying eight disparate rating systems into one.

“The $290 million budget was a process of moving forward post amalgamation and where possible, standardising rating systems and the many different schedules of fees and charges.

“Despite the challenges, council has been able to limit the increase in average general rates revenue to seven percent, conservative in comparison with other similar sized councils across Queensland.

“Some 90 percent of ratepayers in the region will experience a general rate increase of less than 10 percent.

“Almost 91 percent of rateable properties will have an annual increase in general rates of less than $200.

A new rating system has been devised to bring together approximately 67 different rating categories across the region into 37 categories grouped under the following broad headings:
•    Residential
•    Rural
•    Commercial
•    Industrial
•    Noxious
•    Shopping centres
•    Mines
•    Power houses.

“The new system is more equitable and logical and will provide a blueprint for fiscal management of our regional council.  It will be phased in over three years.”

Cr Williams said relief had been offered in the budget for Toowoomba district industrial users in recognition of a significant rate rise experienced last financial year.

“Council’s rating system is based on land valuations.  Some areas in the region have experienced significant valuation increases which will impact on their rates.

“Where possible, council has tried to reduce these impacts by capping rates and averaging unimproved valuation increases.

Cr Williams said pensioners would benefit from council’s pensioner rate rebate of $95.

“Eligible pensioners will receive a flat $95 rate rebate in addition to the State Government rebate of $180.

“For former Cambooya, Millmerran and Clifton shire residents, it will be the first time they have received a pensioner rate rebate.  Those living in the former shires of Rosalie, Jondaryan and Crows Nest will have their rebate increased from $40 to $95 while Toowoomba pensioners will see an increase of $10 in their rebate from $85.

“Former Pittsworth shire pensioners were receiving a $180 rebate which will continue.  Any new pensioners in the Pittsworth area will be eligible for the new $95 rebate.

“Living costs have increased significantly and for many in the pensioner community, making ends meet can be difficult. Council is keen to ease this burden where it can.
“Toowoomba Regional Council is in a strong financial position.  In this budget we have planned to borrow $13.65 million, of which $12m is for the Wetalla wastewater reclamation facility.

“This facility will pay for itself through the sale of reclaimed water for use in coal mines.

“In terms of utility charges, council has tried to achieve consistency and equity across the region.  We have introduced a common pricing regime across all the sewerage and water schemes in the region following a review of all water pricing principles.

“This year allowances will continue except where annual allowances are calculated on a half yearly basis.  In order to introduce a common water pricing methodology, council has capped access charges for commercial premises to prevent significant one-off price rises.

“This year ratepayers will experience a small increase in their water consumption charge in line with industry costs.

“Because of the diversity of assets we now own across the region, council is required to revalue its $2 billion of assets.  An allocation of $350,000 has been put aside for this purpose,” Cr Williams said.

“Ratepayers can be assured that this budget is basically conservative, but responsible, and given the huge challenges we faced in bringing it together, it is a substantial achievement.”