By SONJA KOREMANS
RATEPAYERS are expected to shoulder the burden of council’s multi-million dollar debt when it hands down its budget this week.
Council is holding a closed meeting at 4pm today (Thursday, 2 July) to table the 2015/’16 budget, which will include a rate hike but little evidence council is making cutbacks to expenses.
A number of hints have already been passed as to what the budget could contain, including a large rate increase, the possible addition of levies to cover disasters, tourism and bridges and a cut in the plant and equipment budget.
But insiders said council was unwilling to reduce expenditure on big-ticket items such as employment where there was room for deployment and staff reductions without impacting on ratepayer services.
“The budget will show a few hours here or there reduced on part-time council jobs, but that is not the cut backs needed when you have nine engineers and at least four community development officers on your books,” a council insider said.
“No one wants job cuts on essential services like roads, libraries, swimming pools, road gangs, parks and the front counter staff, but major cuts can be made in upper level administration.”
The financial plan’s architects Mayor Peter Blundell and CEO David Keenan this week declined to give any insight into what the budget contained ahead of today’s meeting.
But previously, Cr Blundell said the SDRC was crunching the numbers on all service and program costings for possible savings and ratepayers should be prepared for an above CPI rate increase.
Last year, council increased rates by 5 per cent.
The SDRC’s annual budget is a political hot potato, with councillors anxious about escalating debt levels, currently at $31 million.
This week, councillors told Southern Free Times they would not give the budget the green light unless there was evidence of major purse tightening.
“Continual rate rises without cutting expenses to cover costs is not the answer,” Councillor Jamie Mackenzie said.
“We can’t reveal budget details yet, but our message months ago to the mayor and bureaucrats was to keep cutting expenses.
“But it seems we have been ignored, despite hours of meetings behind closed doors.”
Others who did not want to go on the record said councillors were unlikely to agree to many of the measures without amendments and changes.
Controversy has also surrounded the date of Thursday’s budget adoption meeting with some councillors saying two days did not give them sufficient time to read over the papers ahead of today’s meeting.
However, Mr Keenan said the process was correct and in line with the Local Government Act.
The Local Government Association of Queensland (LGAQ) this week said it was not concerned about Southern Downs Regional Council’s debt levels.
“There are other councils in Queensland with greater debt, and it’s not uncommon now as there is less funding to councils from state and federal governments,” an LGAQ spokesman said.
“The Southern Downs Regional Council debt is not one that has been brought to our attention.”
But council’s struggle to remain in the black since its amalgamation seven years ago has caused deep disquiet throughout the community and infighting within council.
If council debt reaches unserviceable levels, a snap council election could be held and auditors brought in.
The SDRC election is in March next year.
