Saturday, June 26, 2010

Council Budget Will Impact Living Costs

Time to start publishing the facts! Yesterday marked the third budget for Redland City Council delivered under Melva and her team of Councillors. I would have liked to separate the items in the Budget worth supporting but feel too strongly about the issues that concerned me. As has become tradition for Melva and her team of Councillors, they moved the majority of the Budget and did not allow me to support many items individually. Hence, why I did not support Redland City Council's budget 2010/11.
My concerns are:
  • Unserviceable Levels of Debt? - The level of debt adopted in the 10 year Financial Strategy. Debt is not always bad, however, there is significant risk when increasing debt from $43 million to $151 million dollars (350% increase) in 5 years based on the assumptions of increased revenue to service the debt ( such as dividends from the new water business Allconnex as at July 1 which has no proven record). Any bank manager would ask for more evidence and request that we do not rely on assumptions to service debt.
  • A Slug to Business - The increased rates on commercial properties. Business in Redland City is in dire need of support. Centres such as Cleveland are dying slowly and we are now being referred to as "Deadlands". Their 18.5% hike in rates could impact negatively on local business as landowners will ultimately pass this on to their tenants in uncertain financial times. There are no direct benefits to business, as the budget spending on Economic Development remains around the same $1.5M, compared to spending on Environment of around $20M. I do not believe this approach is sustainable and leads me to my next point.
  • Wasteful and Inefficient Environmental Spending - Environment levy increases by another 11% - now $109.80 per household. Why? We are now buying land that is already protected by conservation zonings with the ongoing maintenance cost for future generations. The cost benefit of these purchases to the environment is not justified. Also, these funds are now being spent on ancillary items, e.g. $193000 for a Koala Communications Officer to facilitate Facebook, MySpace pages and the like. Surely, one of the great values of social media tools is that they normally come for free!
  • Tip Management Strategies that Encourage Illegal Dumping - Increase in gate fees at the tip going from $4 in 09/10 to $8 10/11 for a car. That is a 100% increase in one year! Cars with trailers will now pay $12 for the experience. Since the introduction of this by Melva and her team of Councillors in 2008, people will tell you that illegal dumping increased in our bushland areas. But Melva and her team of Councillors proceeded to adopt a strategy that supported that fee and in fact supports continuing elevation of that fee over a period of time.
  • Weinam Creek Issues Unresolved - Weinam Creek Masterplan parking at Redland Bay is an unresolved hot debate in the community. Residents of Redland Bay don't want it, and residents of Southern Moreton Bay Islands don't support it. Regardless, Council is pushing on and has allocated $2.6M to this project in 10/11.
  • Wasteful Purchase of Developers' Land - $5.2M has been allocated to purchase premium residential South East Thornlands land from a developer for a park. This land was not recommended by the State or the planning officers of Council for District Park, however, upon election, Melva and her team of Councillors took to the plan and changed the zone with colouring pencils hoping they could acquire the land at a reduced open space value. Regardless of professional advice, they have committed $5.2M of ratepayers hard earned dollars to purchase it.
  • Pet Owners Slugged - Cat owners (not desexed/microchipped) will be slugged $65 - a 133% increase for registration. Dog owners will see another 4% increase to $94 and almost $50 for a desexed dog.
The lack of balanced spending continues and we should question what the extra return is to you the ratepayer for these extra dollars. There will be a total increase in rate revenue by Redland City Council of 13.79% in 2010/11. Some residents will see their total rates rise by up to 17% and I believe there will be many who will discover the increasing cost of living, particularly in Redland City, will be crippling.

I encourage all Redlands Ratepayers to continue to closely question this Council, not just on this Budget but on decisions that will impact your future. We must strive to ensure responsible, accountable governance that reflects the needs and expectations of a Redlands working together.