Maranoa Regional Council Budget 2009_10

Charisse Edwards
Phone: 1300 007 662

Introduction

The Maranoa Regional Council Budget 2009/10 is the financial and resource plan to deliver quality lifestyle through the provision of services and facilities to the people of Maranoa Regional Council. The Budget 2009/10 facilitates the delivery of quality services to the dynamic, vibrant and progressive communities throughout our region.

The following statements are prepared in accordance with the Local Government Act and the Local Government Finance Standards and relevant Accounting Standards.

The format of the budget statements is designed to provide a clear picture of the financial situation.

In accordance with the requirements of the Local Government Act 1993, Council must also forecast its budget for the 2010/11, 2011/12, 2012/13, 2013/14 financial years. The forward estimates as contained within these estimates are indicative of Council’s future resource allocation, however, these estimates are not intended to formulate a rigid commitment of future resources.

Budget Summary 2009/10

Proposed Features

Continuation of the equalization plan for rural general rates across the region which was introduced in the 2008/09 budget;
Increase of 5% for Residential Rates;
Roma Commercial and Roma Industrial general rates with a zero % increase;
Removal of rates limitation on all rating categories;
Equalisation of Sewerage charges across the region;
Equalisation of Refuse charges across the region;
Water charges increases of 5% for Roma, Mitchell & Surat;
Equalisation of Water Charges for Injune, Wallumbilla, Jackson and Yuleba;
Residential Water Usage Allocation of 650 kl (decrease of 100kl for Roma, increase 150kl for Injune & 50kl Wallumbilla, Jackson and Yuleba);
Discount on general rates and services of 10%
Wild dog control rate for all rural rate payers
Council Pensioner Rebate of 50% to a maximum of $180.00 of General Rates;
Capital Budget of $25M
Proposed Borrowings of $3.84M for Crusher purchase
Anticipated cash balance 30/6/10 of $12.7M.
Budget Report 2009/10
Overview
I have pleasure in presenting the second annual budget of Maranoa Regional Council.
Council’s revenue budget is estimated at approximately $49.06M plus capital revenue of $14.77M making a total of $63.83M. Budgeted expenditure is in the order of $76.04M. This includes $51.04M for current expenditure (which includes depreciation) and $25M on potential capital expenditure. Capital Expenditure represents approximately 33% of total expenditure whilst 67% represents operational expenditure.
Grants and Subsidies
Grants and subsidies have the following significant components for 2009/10-
Some of the larger being;
- Commonwealth Grants Commission (General Purpose Grant) – $9,026,000
- Commonwealth Grants Commission (Identified Road Component) – $3,134,800
- Roads to Recovery Grant - $2,131,000
- Blackspot Funding - $1,078,000
Minimum General Rates
The minimum urban general rate is proposed as $525.00 for Roma and Mitchell Business. $420.00 for Mitchell and Surat Residential and $315.00 for Injune, Amby, Jackson, Muckadilla, Mungallala, Wallumbilla and Yuleba Residential.
Service Charges
The proposed budget incorporates an equalization of sewerage and cleansing charges across the region. Water charges in Roma, Mitchell, Amby Surat and Mungallala have increased by 5%, and have been equalized in the townships of Injune, Yuleba, Jackson and Wallumbilla.
Borrowings
The proposed budget includes borrowings of $3.84M to purchase a crusher for the quarry to replace one that has been previously hired.
Conclusion
The draft budget as presented provides for some significant works over the next twelve months. During the year close scrutiny to budgets will be maintained to ensure expenditure is maintained within budget limitations. The budget as prepared is a draft budget and the final decision rests with Council for consideration and amendment.
Stuart Randle
Chief Executive Officer.
Local Government Act 1993 Extracts
Financial Accountability
Each Councillor is under a legal obligation to ensure that disbursements from an operating fund are provided for in the budget adopted for the year in question. Councillors can be called upon to personally repay the amount to the Council if they knowingly agree to a disbursement not provided for in the budget, unless the disbursement was made for a purpose of genuine emergency or hardship. The Councillors involved are jointly and severally liable. The fact that Councillors received no personal gain or advantage from the disbursement is no defence.
Amendments can be made to the expenditure side of budget during a year to deal with unexpected changes in the priorities for expenditure. The scope for changing the revenue side is more limited, because rates and utility charges can only be made at a budget meeting and cannot be changed during the year. Nevertheless, councillors are personally responsible to ensure that any necessary budget changes are made before non-emergency expenditure is incurred outside the scope of the initially adopted budget.
The Annual Budget
The preparation and adoption of the annual budget has always been one of the major responsibilities undertaken by Council.
Local Governments are required to adopt a budget each financial year after 31 May prior to the start of the year and before 1 September, and a Local Government is required to develop the budget consistently with the Corporate Plan and Operational Plan. The budget developed for the operating fund must specify the estimated costs in total and for each of its significant activities, the sources of funds necessary for the spending involved and its revenue policy. It also must specify these matters for the next two financial years.
The annual budget is the primary instrument of financial control for a Council. It is the basis for levying rates and charges. The Local Government Act 1993 stipulates that the budget should balance, although certain specific reserve funds may be created to meet future contingencies. Surpluses and deficits, if any must be carried forward to subsequent financial years.
In accordance with the Local Government Act and Standards budgets are prepared on an accrual basis. Accrual accounting recognizes incomes and expenditures when they are due rather than when the cash transaction takes place. This is consistent with modern practices.
Budget Control
The Local Government Act requires that a Local Government must establish and comply with systems for managing its finances and procedures for recording and reporting its financial operations. The Chief Executive Officer is required to present statements of accounts to an ordinary meeting of the Council each month.
Budget Preparation
Local Governments are required to prepare their budgets on a continuing basis in conjunction with the Corporate and Operational Plans and Revenue Policy. Corporate plans are prepared for a minimum of four years, and each year’s budget should provide some indications for the following four financial years.

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Maranoa Regional Council Budget 2009_10

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