By Jeremy Sollars
RATES rises for Southern Downs Regional Council ratepayers will be capped at a maximum of 4 per cent annually for the foreseeable future to keep the council in the black, Mayor Tracy Dobie has said.
In its annual report for 2015-2016 released last week, the council announced it had a $5.6 million cash surplus in its last budget and vowed to “bank” the savings to help keep its finances under control.
Cr Dobie said last week that it was only the second operating cash surplus during the life of the amalgamated Southern Downs Regional Council and would start moving the council away from being classified as a ‘financially unsustainable’ local government authority by the State Government.
The surplus was achieved in part with a 4 per cent rates increase, but any hopes ratepayers may have had for future rises to be in line with the consumer price index – currently sitting at 1.3 per cent – seem dashed.
Cr Dobie refused to point the finger at previous councils for failing to keep spending in check but made it clear the days of borrowing from higher levels of government for day-to-day operational needs – as opposed to capital expenses – were well and truly over.
She said the council’s aim was to keep future rates rises to “4 per cent or lower”.
“There has been quite a lot of wastage and over-servicing in the past and managers haven’t been held individually accountable for their own department budgets until now,” Cr Dobie said.
“Natural disasters such as flooding have also been an issue in recent years and have eaten into council’s reserves.
“But it’s not a bottomless pit.”
Cr Dobie said she and her fellow councillors were also tightening their belts and limiting expenses, including refreshments at council meetings.
Morning tea and lunch have traditionally been served up at monthly meetings but a strict BYO cut lunch policy now applies and the annual report shows total councillor expenses for such things as mobile phone use and mileage came in at $5967.
While proceeds from the sale of unused council land in the last financial year were not factored into the surplus, they were used to directly service the council’s debt, which is currently sitting at just under $28 million.
A spokeswoman said about $1m was raised from selling off council-owned land at 3A and 3 Bell Place and the vacant block at the corner of Fitzroy and Albion Streets and land at Owens Scrub Road at Leyburn.
The Fitzroy/Albion block has a current approval for retail and takeaway food outlets, but development on the site is yet to progress.
Cr Dobie said no further sales of redundant council land or assets were planned for the current financial year.
