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Budget Adoption

7 July 2005

At a special council meeting on Thursday night, 7th July, the Circular Head Council adopted the 2005-2006 Annual Plan and Budget Estimates, announcing a 2.80% increase in general rates. Rates for Water Reticulation and Sewage Disposal were not increased. A 3.5% increase in waste charges has also been implemented.

General Manager, Greg Winton said "The Council has delivered a sound and sensible budget to the community for 2005/06. A small decline in cash reserves has resulted from Council's long term commitment to capital improvements, specifically in the core areas of roads, waste, and sewage disposal. Parks and Recreation has also been targeted for further improvements. The budget shows a strong operating position whilst maintaining sufficient reserves to address future issues with maintenance of infrastructure as well as working with the community to achieve better lifestyle outcomes."

Mayor, Ross Hine speaking at the meeting said "The Senior Management Team is to be congratulated for their contribution to the sound financial position of the organization. I am confident the projects and programs, as outlined in the 2005/06 Annual Plan and Budget Estimates will be well received by the community".

As a result of this responsible budget, rate increases for urban residential properties will be in the order of $25. Urban, non-residential properties will increase by approximately 1.5%. In the rural sector, house/farms are set to increase by no more than 2.4% generally. This higher figure is due to the greater impact of the change in general rate to those properties, as the nil increases in water and sewage affect urban properties to a greater degree.

Council has reviewed its costing mechanisms and further aligned its charges with the Government Prices Oversight Commission's recommended guidelines. This has resulted in revised cost allocations and the subsequent maintenance of 2004/05 rates for Water Reticulation and Sewage Disposal.

Ongoing maintenance problems with the Council owned and operated heated, indoor pool in 2004/05 have been rectified in the short to medium timeframe

Federal Grants from the Finance Assistance Grants and the Roads 2 Recovery funds significantly impacts on the Council's ability to maintain a strong budget position. Continuation of these funds in conjunction with recognition of the unique problems facing small, rural councils is of paramount importance.

Significant expenditure items include:-

  • $1,371,000 for roads reconstructed
  • $350,000 for roads resealed
  • $425,000 for roads sealed
  • $590,000 for Bridges
  • $157,500 for Subdivisions
  • $350,000 for CBD improvements?
  • $250,000 for Smithton Recreation Ground improvements
  • $910,000 for waste cell construction at Port Latta
  • $270,000 for Sewerage treatment improvement
  • $50,000 for Tourism infrastructure initiatives

Rate notices will be distributed by the end of July.

Authorised for general media distribution by Greg Winton, General Manager, Circular Head Council on Friday 8 July 2005.