May 29, 2009
The draft management plan for the next year has been released and considers a total 2009/2010 budget of some $192 million.
The draft plan forecasts a solid capital works program of about $96 million.
TRC is forecasting a deficit budget to continue some big budget projects and infrastructure building and maintain service levels to the community on current programs.
The draft outlines all proposed TRC rates and annual charges, fees, other revenue and works programs for the next year and management forecasts for the next three years.
TRC general manager Glenn Inglis says as a result of the global economic crisis and some other financial factors it has produced a deficit budget of about half-a-million dollars each year for the next two years.
Mr Inglis says the economic downturn and decrease in interest rates has cost the council about $1million in revenue but it has had to wear some other “black holes” outside its control like superannuation payment blowouts of about $900,000 and decreasing fees and grant funds.
In his report, Mr Inglis says the global financial crisis has had a drastic impact on TRC’s spending and income results.
He says a reluctance by the state and federal governments to reform intergovernmental funding to improve sustainability is a key issue and that operating deficits are creating a need to defer or underspend on the renewal of infrastructure.
Mr Inglis notes too that TRC is seeing increasing involvement in non-core local government service provision because of increased community demands and the budget is increasingly impacted by what he describes as “continued cost shifting” by the state and federal governments.
He said an example of cost growth was the announcement this week that electricity charges will go up by 20% from July. This equates to a slug of about $470,000 extra for TRC in power costs.
The draft budget for the next year includes some key outcomes:
- A consolidated budget operating income of over $88million;
- A forecast deficit budget of about $500,000;
- A capital works program of $96million;
- Major projects like completion of the Westdale sewerage upgrade and wastewater reuse scheme, a new indoor sports centre, Taminda sporting grounds relocation, design and business planning for a new aquatic centre, the federal government’s community infrastructure stimulus program and the completion of four new timber bridges on regional roads;
- Continued Roads to Recovery and local roads works programs across the region;
- The average Tamworth residential and business rates bill will see an average 3.5% increase this;
- A proposed 7.53% increase in water consumption charges for residential users;
- A 5.7% increase in the residential sewerage charge;
- Waste charges are up to maintain existing service levels – the average city domestic waste charge is $243
- Will use loan funds of $43 million to fund some projects, including $32m on the Westdale upgrade and effluent reuse project
- The total rates income is expected to be $23.7million
- TRC expects to raise about $12.5million in residential rates income from Tamworth or city properties, $242,800 from Barraba, $365,100 from Manilla, $239,400 from Kootingal and Moonbi and $150,00 from Attunga, Bendemeer and Nundle villages (does not include farmland rates)
- Business rates will contribute about $4.2 million income
- Manilla will get a new $1.2million works depot; and
- There’s an extensive $11.8million program of water and sewer upgrades across TRC, in addition to the Westdale upgrade.
Mr Inglis says there are rises in water and sewer costs and you will pay more for garbage and other waste management services to sustain new works and environmental standards.
The public forums will be held at:
Barraba - Tuesday 2 June 2009 TRC Barraba Office, Alice St, from 5.30pm
Manilla - Tuesday 2 June 2009 Manilla Mechanics Institute Meeting from 7.30pm
Nundle - Wednesday 3 June 2009 Nundle CWA Rooms, Jenkins Street, Nundle from 5pm
Kootingal – Wednesday 3 June Kootingal Public Hall, Denman Avenue, Kootingal from 5:30pm
Tamworth -Thursday 4 June 2009 Tamworth Community Centre, Darling Street, Tamworth, from 6pm.
Submissions close Wednesday 24 June 2009.