2019-20 Budget Summary

Published on 26 June 2019

Council passed the 2019/20 budget at the June meeting. Below is a summary of the key items in this year's budget:

Mine rates transfer ended

Council had previously been transferring 1% of mine rates onto the residential sector in an effort to end the city's reliance on mine rates, ensure the mines' rates aligned with their actual land use, and safeguard residents against a sudden rates spike if the mines were to close. However the positive outlook of the mining industry combined with the likelihood of mining operations continuing until 2030 has seen Council decide to end the rates transfer for its current tenure.

Rates increase stays small

Council again only increased rates by the rate peg limit of 2.7% as set by the Minister for Local Government. Broken Hill remains one of few Councils in NSW that has not increased rates above the rate peg in the last decade.

Deficit decreasing

Council posted a budget deficit of $1.78 million in the 2018/2019 financial year. It is budgeting for a deficit of $1.48 million in 2019/20 - an expected improvement of 17%.

Improving and maintaining our services

Council will spend $6.6 million on capital works in the coming financial year, with the majority going toward roads and footpaths ($2.71m), buildings and assets ($2.1m), plant and equipment ($1.07m), and parks and open spaces ($780,000). Major projects include a new skate park ($702,000 subject to partial grant funding), extensive road resealing ($806,000), heavy patching of the airport apron ($630,000), and the replacement of street signs across the city ($200,000).

Maintenance and operation costs for Council’s assets for the next financial year are budgeted as follows: Art Gallery: $790,000, Aquatic Centre: $1.01m, Civic Centre: $500,000, GeoCentre: $250,000, Library: $680,000, Parks and open spaces: $1.63m, Roads and footpaths: $2.51m, Sporting fields: $360,000, VIC $350,000.

Bid to clear airport car park

Council is aware that the airport car park is often clogged by commercial vehicles, frustrating residents and making it difficult to utilise the terminal. Council will now look to implement a Smart Parking system that monitors carpark usage and allows for paid parking. Parking will remain free for all vehicles at the airport for the first three hours, however vehicles wishing to stay longer will be a charged a fee, up to a maximum of $10 per day. 

Fee change for waste facility

An independent audit of the city's waste facility found fees were being charged in an inconsistent manner, with waste categories misaligned to the Environmental Protection Agency's (EPA) Waste Classification Guidelines.

Commercial users also expressed frustration that they were charged to use the facility while residents could dump limitless rubbish for free. Concerns were also raised regarding businesses posing as residential users and hiding rubbish under green waste to dump commercial quantities of waste for free.

Councillors have voted to implement a more equitable system, in which each residential user may use the facility for free five times a year (loads up to one tonne). After that limit is exceeded, residential loads of rubbish up to one tonne will be charged at $5-$15 depending on size and weight. The fee structure will also be simplified to better meet the needs of commercial users, and meet EPA regulatory standards.

The dumping of recyclables, E-waste, iron and steel, and green waste will remain free. 

For a full FAQ on the new waste fees, click here!

Please note: Although the fees will come into effect from July 1, the waste facility will remain free for residential use (loads up to one tonne) until a voucher system is implemented to provide 5 free trips for users. The system is expected to be implement in August, and vouchers will be sent out with annual rates notices next month.

Fee reduction for small planes

A revision of airport landing fees will make it cheaper for small aircraft to land in the city. Larger aircraft will see a small to moderate increase in landing fees.

Council must rationalise assets

As has been mentioned by Council previously, there has been an underspend of approximately $54 million on asset and infrastructure renewal across the past 20 years.

The impact of this underspend is now being fully realised as Council undertakes the first significant review of assets in many years, and begins to fully understand the cost required to bring them up to standard and maintain them into the future.

Put simply, Council has too many assets, and does not have the money required to maintain them.

Council will look to rationalise assets across the city in consultation with the community, rather than increase rates above the rate peg to cover rising costs around their maintenance.

New plans increase transparency

Council undertook a complete overhaul of its Operational Plan (OP) and Delivery Plan (DP). The plans outline what objectives Council will look to complete up to 2021 in alignment with the Community Strategic Plan. The simplified new format provides clearer outcomes and actions, and removes outdated, duplicated, and non-essential information from the previous plans.

Those wishing to view more details around draft budget issues are encouraged to view the business papers from this month's Extraordinary Meeting of the Council here.