Budget 2009 - 2010
Mayor Les Tyrell's 2009 Budget Speech
Fellow councillors, ladies and gentlemen
It is my honour to present the 2009/2010 budget for the Townsville City Council, a budget that sees the city climbing back to financial security.
I am pleased to report what I believe is our most significant achievement for this coming year. Through sound financial management and efficiency reviews, we are halving our operating loss.
At the time of amalgamation, this city was facing the potential to run at enormous losses each year. That is, we were facing the prospect of spending more than $58-million a year more than what we were bringing in. Worse still, it was predicted that we would continue to go backwards for more than a decade.
Last year, we slashed that loss by almost half. This year, we will again almost halve it to an estimated $14.7million.
I can not emphasise enough how important strong financial management is to the future of our city.
The people of Townsville have asked us to reverse the trend of large financial losses. We have reversed it, and we have done so in a climate of extreme economic hardship.
We have bucked the trend of both the State and Federal governments which have put themselves into massive deficit in these tight financial times. We are beset by rising fuel costs with the removal of the fuel subsidy, increases in electricity costs, higher labour costs and the continual reduction of federal and state financial support, as funding requirements are shifted from one sphere of government to councils.
Our development income has also been slashed as a result of the global financial crisis.
In spite of all of these financial pressures, this council is setting our city up for a sustainable financial future, by cutting out wasted expenditure.
But we will not stop in building a better city. I am pleased to announce a record capital works program. A couple of months ago, we went out with our survey to all residents. Overwhelmingly, the response was to focus on roads and on major projects that would stimulate jobs and growth in our economy.
We have committed 374 million dollars to capital works this year. This is the biggest infrastructure program that the city has ever seen. And this will be delivered in an economic climate where the ratepayers will get excellent value for money. The tough times mean we will get the best prices for our building projects, as companies vie for this work and push prices down.
So how have we achieved this record capital works program while still clawing back our operating losses?
We have spent the past year and a half since amalgamation frugally looking through our business, to identify some real savings. I made a commitment during this process to keep rate rises for 2009/2010 well below 8 percent.
I am determined to establish a rating system that is fair and transparent, where income is attached to the expenses it relates to. We cannot have a situation where we are robbing our utility charges to pay for everyday costs. We will eliminate our operating deficit by securing income from our general rates and cutting back our expenses, not by living beyond our means and money-grabbing from our utilities.
Today, we are delivering on this. The average increase for total rates and charges for 2009/2010 is 6.9 percent. For residential owner occupiers with a land value of $120,000 dollars, the average increase will be three dollars forty per week.
To benchmark our council, our total rates and charges rise has come in under the rate increases of Cairns at nine percent, Gold Coast at 12 percent and well under that of Mount Isa at 17 percent.
Our record capital works spend sees significant progress made on what we are calling Townsville's Big 5 - our five largest capital works programs that will be completed by the end of 2011. They are the Murray Sports Complex construction, Flinders Street redevelopment, Water and Wastewater Upgrades, Building Better Local Roads Program and Civic Theatre extensions.
All five projects will start to take shape this year. All are running to schedule in terms of both timing and budget and all contribute a better amenity and lifestyle for our city.
Our biggest ticket item will be the continuation of a massive upgrade of Townsville’s water and wastewater network. The 2009/2010 budget has an allocation of $76.8million, with construction work scheduled to begin in September. The centrepiece of the project is a complete upgrade of Townsville’s oldest sewerage treatment plant at Mount Saint John, with the facility’s capacity set to be more than doubled.
The Mount Saint John plant will be transformed into a modern, regional facility that will meet Townsville's future growth for decades to come.
We promised the community we would get the basics right and our 83 million dollar Building Better Local Roads program is proof of this.
The program includes $37million for the fast-tracked construction of North Shore Boulevard as well as a big list of projects on local roads and streets aimed at easing traffic congestion and bringing local roads up to standard after a record wet season.
Projects in the big road budget will reconstruct, reseal and resurface roads to provide more permanent repairs to the worst effected areas.
We will invest $30million in the city’s drainage network over the next three years to better protect the community from flooding.
The big drainage package will include a roll out of projects identified in the council’s Local Flood Mitigation Strategy developed earlier this year.
This budget ensures that we will not go backwards in providing important recreational and cultural facilities to support the families of the city.
Refurbishments of the Tobruk and Long Tan pools will be completed and we will commence the upgrades to the Kokoda Pool.
These capital works follow- through on recommendations in the Aquatic Facilities Master Plan to guide the future of public pools in the city.
The City Budget will deliver a big range of new facilities to increase opportunities for grass roots sporting and recreational activities across the community.
Highlights include new clubhouses and playing facilities in the final stage of the Murray Sports Complex and construction of the Kalynda Chase Tennis Centre.
Activity at Murray will crank right up with major improvements for cricket, AFL, basketball, darts, BMX, horse sports, cycling, rugby league, netball and junior football.
The overall Murray redevelopment also includes the multi-sports Townsville International Sports Centre which will also be built in the next 18 months.
Council and the State Government are contributing $365,000 towards the projects with the remaining three point four million dollars coming from the Commonwealth.
Support for young people, seniors, events and grants in the coming year will ensure we have an active, safe and engaged community.
Hot on the heels of the completion of Mt Low’s Peggy Banfield Skatepark is the 721 thousand dollar Pioneer Park Skate Park at Riverway, which is scheduled for completion in October.
It will be delivered with assistance from the State's Community Renewal Program and Department of Sport and Recreation.
Funding has been allocated for youth development programs, including Youth Council activities and the school holiday program.
The 2009/2010 budget provides $1.9 million which incorporates Federal and State Government funding to assist thousands of frail and aged citizens in the city with home services, modifications, home security and yard maintenance.
Pensioners will continue to get a helping hand with their rates with the most generous rebate scheme in the State and continuation of the Pensioner Transport Subsidy Scheme, with $350,000 allocated for this in the budget.
The scheme entitles eligible pensioners to discounts of up to 80 per cent on the normal fare when travelling on the city’s buses or ferries.
Grants of more than $2million will be distributed to arts and cultural groups, sporting and recreation clubs, and not-for-profit community organisations in the coming year.
Our final, but not least important priority area is the environment.
A total of $5.68million has been allocated to the integrated sustainability budget to keep supporting those engaged in future sustainability and active protection of the natural environment.
A highlight will be the reconstruction of the Rowes Bay foreshore which was battered during this year’s king tides and prolonged wet season.
Additionally, funding has been allocated to continue priority access works at the Northern Beaches, with further funding applied for under disaster recovery arrangements with the State.
The council is also supporting a range of new and ongoing projects, many of which have grassroots community involvement and government partnerships.
We understand that people love their lifestyle and value their parks.
The council won’t be letting the grass grow under its feet with a big injection to maintain the city’s parks network as one of the best in regional Australia.
A $45million Parks budget for the city’s 220 parks, gardens and open spaces is an increase on the level of funding compared to last year and the spending of the former councils.
And finally, if you thought the V8 Supercars were exciting, wait until you see the might of our airforce as we join with the defence force to host Townsville's major military sky show to celebrate the Strand's tenth birthday. It is just one of many events we are supporting and organising to make this city the lifestyle capital of the country.
The 2009/2010 budget has been a tough assignment, but we have embraced the challenge to get the Council’s finances sorted, to stop living beyond our means, to secure partnerships with the business and government sector and to contribute to the growth of the region’s economy.
I particularly thank our CEO Ray Burton, our executive team and Council’s financial services staff for their help during this period. We are one of the first councils in the state to go to one rating system, so soon after amalgamation. Last year, that saw an alignment of water and sewerage charges, this year we move to the same rate in the dollar. There is also an extension of the water watcher scheme throughout the city, the scrapping of the multi-pedestal charge and an alignment of our commercial charges. The work in getting to this point can't be underestimated.
The outcome - we are truly one city.
Than you to the city’s Councillors for their support in setting priorities for the future and making what have sometimes been difficult decisions.
This is a budget that focuses on the things that matter to build better infrastructure while exercising strong financial control.
Councillors, I offer you the budget for the 2009/2010 year, a show of how we are climbing back toward a sustainable future for our city.
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