Mayor Helen Blackburn flags search for ‘operational efficiencies’ as briefings reveal $17m deficit
Bundaberg Mayor Helen Blackburn says the worse than expected financial state of the region’s council could mean cutbacks to non-essential projects and services as it tightens its belt.
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Bundaberg Mayor Helen Blackburn says a $17 million deficit revealed through briefings means the region’s council will need to cut back on non-essential projects and services in order to balance the budget.
Speaking at a media conference in the council chambers on Monday, Ms Blackburn said council’s financial situation was worse than she had expected with council expenditure exceeding revenue at a steadily increasing rate since the 2018/19 financial year.
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“We’ve found ourselves in a position that’s far more difficult than we had anticipated,” Ms Blackburn said.
“Like any household budget, we’re all being hit with the cost of living at the moment, but for council it also means that we’re going to have to tighten our belts and make some difficult decisions moving forward.”
Inflation was a significant factor, with Ms Blackburn citing increased construction costs for large capital projects as one of the main causes for the rising expenditure.
Ms Blackburn was a vocal critic of the $75m Bundaberg Aquatic Centre when president of the Bundaberg Regional Ratepayers Association, in July 2023 including it among the “costly and wasteful projects” she said council was funding through increased fees and charges.
Ms Blackburn commented on the previous council’s commitment to large projects in an inflationary economic climate.
“I think some people might consider that there has been an emphasis on capital projects that potentially moving into an environment of an inflationary increase could have been thought of differently,” she said.
“But I guess who knew that we were going to be in such a position from a financial perspective as well as from an inflationary perspective.”
Ms Blackburn ruled out any changes to the aquatic centre project and the controversial renovations to the Old Wintergarden building which are close to completion, although council would be reviewing the project and its purpose in the coming weeks.
The Anzac Park development is also in line for review, pending reports on all ongoing projects which have not yet been provided to the new council.
Beyond a possible freeze on committing to new large infrastructure projects, Ms Blackburn flagged cuts to council’s operating budget in line with her “back to basics” pre-election commitment to ensuring council is delivering services within its proper scope.
“Council has essential services it needs to provide to the community and will continue to provide those essential services to the community, and we do need to look at what efficiencies that we can make operationally and across the organisation as a whole,” she said.
Ms Blackburn said Bundaberg Now, another frequent target prior to the election, was up for review.
“At this point in time, (Bundaberg Now) is not something that the council has made any decisions on,” Ms Blackburn said.
“It is something that council’s asked for a report on, however, to see where there might be able to be efficiencies in that department.”
The return of the 10 per cent early rates payment discount, another of Ms Blackburn’s election promises, was not being ruled out in light of the worse than expected financial situation with the mayor saying it will be a decision for the entire council.
“I can’t pre-empt what the council is planning on doing with that moving forward,” Ms Blackburn said.
“I have said that I would fight for that, and I will continue to fight for that for the region.”
While details for the council’s 2024/25 budget will not be finalised until it is handed down in July, Ms Blackburn said she wanted to inform the public about council’s financial situation as soon as possible out of a commitment to improved transparency and accountability.
“Since it’s been identified that we are in a very serious financial position, it’s important to let the community know that that’s where we are,” she said.
“It’s not for me, as mayor of Bundaberg regional council, to hold that information to myself.
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“It’s up to the community to be aware of what’s going on; at the end of the day, it’s public monies that we’re dealing with that and it’s my job to make sure that we all know what’s happening with those monies.”
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