Council promotes budget

By Ed Merrison
KNOX City Council has released a budget proposal for next year which it says achieves key aims of controlling rate rises without cutting services.
Knox mayor David Cooper said he was very grateful to have made savings while keeping services the same.
However, Dobson Ward councillor Karin Orpen said a closer look at the budget raised questions about sustainability and fairness.
Announcing his budget Cr Cooper said: “Knox City Council believes the best way to support a vibrant community is through a balanced approach to economic, social and environmental considerations.
“The Proposed Budget 2006-07 and Council and Community Plan 2006-10 outline how this will be achieved.”
In its budget, the council aims to deliver $19.675 million worth of capital works improvements.
In addition, the council has reported an increase in funds for asset renewal of $1.4 million, and overall savings of almost $1.5 million.
These savings have been made despite increased expenditure in other areas, such as the provision of extra staff, and with the escalating cost of providing services.
The council said 52 per cent of ratepayers would receive either a decrease in rates or an increase of less than three per cent.
However, Cr Orpen warned these figures did not tell the whole story.
She said under the proposed rate structure, 76 per cent of ratepayers would experience an increase in rates, as opposed to the 53 per cent who would have seen a rise under the existing model.
Cr Orpen also questioned the sources of council savings, pointing out that a key component of savings came from a $1 million ‘gift’ from the previous council obtained through the tendering process for its waste services.
She called it a ‘free kick’ that could not be relied on in future budgets.
Cr Orpen also referred to a council proposal to recoup merchant fees previously absorbed by the council and covered by rates, as “a new tax on residents”.
This year’s merchant fees are expected to save the council $120,000.
Cr Orpen also warned that with employee costs and many material costs rising at rates in excess of the CPI, the costs of running the council were estimated to rise by 3.75 per cent in 2006-07.
Her words echoed those of council chief executive Graeme Emonson, who wrote in his budget overview that bridging the gap between CPI and the cost escalation of providing council services would present an ongoing challenge for the council.
Cr Orpen also expressed concern about the rate of asset renewal, with the proposal to restrict asset renewal funding to $11.7 million, forcing the council to push back an estimate for reaching a $15.9 million target from 2011-12 to 2014-15.
But, according to Cr Cooper, the change to the time frame did not mean a change to the target.
“We want to reach the same goal, but we want to achieve it at a pace the ratepayers can afford,” he said.
Cr Cooper said written submissions to the proposed budget were welcomed by Friday, 9 June and a council committee would hear submissions on Wednesday, 14 June at the Knox Civic Centre.