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Management Plan 2009/2012Last modified: June 29, 2009 - 4:30 PM
Council has sent all ratepayers a newsletter to inform them of the current financial situation and Council's draft budget position. You can view the newsletter by clicking on "Important Notice for Ratepayers" in the download files section below. The Management Plan can be viewed by clicking on the link Management Plan 2009/2012. Council's 2009/10 Draft Budget ProcessCouncil was determined to apply only the rate pegged increase to the general rate this year, in recognition that many ratepayers are experiencing the effects of the global economic crisis. However Council too is facing serious challenges financially, both as a result of global economic conditions but also due to long term issues facing all local government in NSW. In order to ensure the financial stability of the Council and ensure the maintenance and continuation of services and facilities to the standard that ratepayers require, Council must make some increases. This has been the toughest budget preparation period in Great Lakes Council's recent history. Council has faced a large increase in costs, for example water and sewerage is up 12%, bitumen is up 9% and electricity is up 20%, just to name a few. Council also has an additional superannuation bill of $660,000 per year for the next ten years, as this has been levied on all NSW Councils in varying degrees by superannuation fund managers. On the income side, due to the financial crisis, Council has a loss of the interest on its investments down from $3 million in 2007/08 to an estimated $1.4 million in 2009/10. Development Application income has been decreasing since the end of the property boom in 2003 from $1.2 million to an estimated $480,000 in 2009/10. For the first time, Council's draft budget shows a deficit of $500,000 for 2009/10. While all areas of Council operations will seek to make savings over the next year to reduce this deficit, obviously this is a situation we cannot allow to continue if Council is to be financially sustainable. In order to ensure that essential services and facilities can be maintained, Council has resolved to apply for a special rate increase to renew the Environmental Rate and will seek an increase to the Business Rate to provide a direct contribution to the Tourism budget. The Environmental Rate IncreaseEight years ago, Council was granted approval for a 3.89% Environmental Special Rate (ESR). Initially the Rate was approved for three years, and then subsequently a further five year approval was granted. Over the last five years, the ESR has provided $3.3 million in rate revenue which has been used to attract over $8.8 million of external funding into the Great Lakes to manage our unique natural assets. This substantial funding has resulted in significant improvements to our natural environment, which in turn has had great benefits economically, for local industries, tourism and for the enjoyment of local people alike. Council is applying to continue the ESR and increase it by approximately 2.45% to 6% of the general rate. This increase will allow the continuation of the work to preserve our natural environment and the flow on benefits to the economy of the region. The increase will raise around $540,000 and $220,000 of this will be set aside each year for essential dredging works in our lakes systems. Our waterways require regular navigational dredging, and State funds are offered for this on a 50/50 basis. Without this increase, Council will have no way of matching the available State funding and our local waterways and economy will suffer. The Business Rate IncreaseCouncil is reluctant to increase costs on our businesses in difficult times, but the prospect of slashing the budget for Tourism would have a far greater impact on local businesses over the next few years. Tourism contributes more than $245 million to the Great Lakes economy and every Great Lakes business benefits from the economic activity that tourism generates. Every resident benefits through increased provision of services and injection of funds into our economy. There has been a large increase in domestic tourism this year, as the economic crisis bites and more Australians forego overseas travel in favour of local holiday spots. If the Great Lakes cut its tourism budget now, we would simply allow other areas to gain in tourism (and visitors) at our expense. This could be devastating for local businesses. Our business rate currently is some 40% lower than the average business rate for other similarly sized NSW Councils. Great Lakes Council is proposing a 12% increase in the business rate which will produce $250,000 to be allocated to the annual Tourism budget. It is proposed that $189,000 of the extra income will be used to offset the $630,000 current net costs of the Tourism function. The remaining $61,000 will be used to support existing and new events to ensure that the significant boost to the local economy from tourism events will continue. The Management Plan 2009/2012 can be viewed at all Council offices, most Libraries and by clicking on the following link: Management Plan 2009/2012Contact details
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© 2008 Great Lakes Council |
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