Council looks to cut assets

RATEPAYERS will still feel a sting despite Cassowary Coast Regional Council being forced to shut and demolish “stranded” assets in order to balance its books.

The local government has released a “caring and compassionate” budget for 2020-21 with a $36.6 million capital works program including $16 million for roadworks.

A modest 1.23 per cent general rates increase was handed down – less than CPI – as acknowledgment of the tough financial strife COVID-19 has forced upon many families.

The document flagged a small surplus of $8600, which would require a significant focus on disposing of unnecessary assets.

Mayor Mark Nolan said the council’s biggest challenge was striking a balance between outgoing costs and a low ratepayer base funding a large number of “stranded” assets.

“We’ll consult the community on what assets they no longer want (and) we’ll write them off our books,” he said.

The Queensland Treasury Corporation in 2015 found the council’s growing asset base had placed a significant financial burden on the community.

The QTC recommended that council identify options to rationalise or dispose of assets that had been earmarked as surplus to requirements.

The value of Cassowary Coast’s asset base per rateable property in 2018-19 was $74,024 compared to $44,177 for the Tablelands and $48,371 for the Hinchinbrook Shire.

Put simply, there were not enough ratepayers to look after such a large asset base which attracted a $27 million depreciation bill every year.

Cr Nolan said the council had begun rationalising with the Warrina Lakes pool closing down last year and staff had drafted a list of further assets that could be cut.

A community engagement panel consisting of 26 ratepayers will be formed to help determine which assets should be abandoned.

“They’re going to advise us on whatever they see as stuff that’s not sustainable – lowhanging fruit and we’ll start trimming the fat,” Cr Nolan said.

“We’ve already got toilet blocks, we’ve got community halls, park lands – mowing costs are $2 million per year.

“We also own a number of caretaker houses, they’re on the list as well.”

The council expects to reduce expenditure by $400,000 a year through the process.

The capital works program includes $5.16 million for water security projects, including the Bulgan Creek reservoir to reduce the frustrating frequency of boil-water alerts for Mission Beach, Tully and nearby areas.