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You are here: Home / Community / Strategy predicts a decade of budget surpluses for Redland City

Strategy predicts a decade of budget surpluses for Redland City

09/12/2015 By MoretonBayIslands.com 19 Comments

Click report cover above to download report.
Click report cover above to download report.

Redland City Council today adopted a new Financial Strategy 2016-2026 that predicts a decade of strong financial performance and budget operating surpluses.

Mayor Karen Williams said the strategy also predicted ongoing annual CPI-linked rates increases that would continue to ease cost of living pressures on residents.

“This is the financial strategy our residents have told us they want – it is practical, fair and, most importantly, responsible,” she said.

“It continues to take us on the journey we began with election of the new council in 2012 when we stopped spending more than we could afford and started trimming our costs, identifying efficiencies and restricted rates imposts on residents.

“This has resulted in Council being in its strongest financial position for years. We have good cash balances and low household debt – a position that makes us the envy of other councils.

“We have delivered two straight budget surpluses after 15 years of deficits and are well on the way to a third this financial year.

“The good news now is that under our new Strategy residents can look forward to a decade of balanced budgets and now customary low rate rises.

“This has not always been the case. We have taken the tough decisions at the same time as ensuring our responsiveness to our residents has improved, as has our service delivery.

The long-term strategy predicts:

  • Increases in general rate revenue to generally be in line with the Redland City Council blended CPI
  • Stable cash balances throughout to ensure financial sustainability
  • An operating surplus for the life of the strategy
  • Low amount of borrowing and the costs of servicing these debts within relevant measures of financial sustainability.

“Our long term financial projections include total operating revenue rising from $254.7 million in 2016-17 to $345.4 million in 2025-26,” Cr Williams said.

“Total income for the same period is predicted to increase from $267.4 million in 2016-17 to $355 million in 2025-26.

“Most pleasing is that for every year our expenses are predicted to be significantly less than income.

“The Financial Strategy provides a clear indication of a solid financial position and performance for Council over the life of the Strategy and ensures plans are in place to achieve financial sustainability measures.”

Filed Under: Community, Local & State News, News & Notices Tagged With: community issues, Redlands

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