No frills in plans for spending

AS the Townsville City Council spruiks its “record” infrastructure spend, Mayor Jenny Hill has also labelled her Budget a “no frills” financial affair.

Cr Hill’s self- described “steady as she goes” 2018- 19 Budget will deliver a modest underlying surplus of about $ 700,000 following the carryover of about $ 6.4 million in state government funding for a water security package.

This unspent Community Water Transition Support Package caused what has technically been reported as a $ 5.73 million deficit for the financial year.

Cr Hill admitted the accounting quirk was difficult to explain to the community.

“When you talk to people and say it’s an accounting treatment they all curl up and say ‘ oh yeah,’ but the reality is we received $ 9.1 million from the State Government to work on the water transition pack- age this financial year. We haven’t spent it, so we’ve got to carry that money over,” she said.

“Which means we appear to have a deficit of roughly $ 6 million, yet if you take that ( water) funding away … we actually have a surplus.”

Over forward estimates the council is expecting a $ 132,000 surplus in 2019- 20, which will increase to a $ 7.4 million surplus in 2020- 21.

The largest expense for council in 2018- 19 is employees, which is expected to be about $ 128.2 million.

Cr Hill said the council had increased blue- collar staff by 30 and decreased white- collar staff by 213 since 2016.

The budget includes 1.9 per cent rate rise.

The rate increase will result in a net revenue of about $ 169 million in general rates and $ 197.8 million in utility charges.

Cr Hill said the “modest” increase would be applied flat a across all properties. “What we’ve seen in other councils down south have a rate rise purely for owner- occupiers and then seeing nearly double that for local businesses and other investors,” she said.

“We don’t want to scare off investment, we want investment in our community.”

More than 300 fees and charges have been abolished or changed in an effort to simplify council operations.

The council is still expected to generate $ 21 million in operating revenue from fees and charges.

The council’s total revenue adjusted for discounts and concessions will be about $ 389.4 million for the 2018- 19 financial year.

Losses due to depreciation and amortisation are expected to total about $ 119.9 million for the period.

Cr Hill said the effect of depreciation was becoming a “real problem” for local governments.