Council restructure paying off Budget to hit surplus next year

TOWNSVILLE CITY Council has forecast that its Budget will return to surplus in 2017- 18, enabling the recently restructured organisation to place downward pressure on rates.

Despite significant financial hits costing the council $ 11 million in revenue from rates, fees and pumping water from the Burdekin, a surplus of $ 133,000 is expected to be achieved during the next financial year.

The forecast is the council’s second pre- budget announcement ahead of next Tuesday’s Budget.

Mayor Jenny Hill said the organisation had undertaken a transformational change that focused on financial sustainability, economic activation and community engagement.

“These changes will deliver ongoing benefits for the city,” she said.

“The proof is in the pudding that the council needed to reform because despite the financial hits this past year, we are still forecasting a surplus in the 2017- 18 Budget and year- on- year beyond this.”

While the council has had to downgrade its 2017- 18 revenue forecast and invest in structural reform, the organisation is expecting a surplus of up to $ 30 million over the next decade.

The council expects to save about $ 14 million annually as a result of the 144 jobs made redundant following the restructure, with another $ 14 million to be saved from further efficiencies outlined in last year’s Nous Report.

These included imp r o v i n g p r o c u r e - ment proc e s s e s a n d light vehicle fleet reviews while m a i n t a i n i n g that frontline s e r v i c e s would remain unaffected.

The organisation this week reported that the highly c o n t r o v e r s i a l r e s t r u c t u r e was on track to finish this financial year, with 18 voluntary redundancies left to finalise.

It is expected to be completed by July 3.

Cr Hill said she had wanted to implement the restructure during her last term as it was long overdue.