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Byron United Get "Facts" Wrong Again

Byron United Get

Byron United has done it again. After being dressed down by the General Manager a month ago for getting the figures wrong about the management and finances of Byron Council, Byron United (formerly the Chamber of Commerce) has put out another set of incorrect figures. You would have to wonder about the their ability to make recommendations for Mayor and councillors.


Thankfully Mayor Barham who does know how to count has given out a statement on the true state of play at Byron Shire Council.  

BYRON UNITED GETS ITS  ‘FACTS’  WRONG AGAIN

Advertisement in Byron Shire News 11 September, 2008  page 13

 ** information clarified by Byron Shire Council’s Financial Manager 

 

False accusation 1.

“Jan Barham has not eliminated debt”

Response

The $7m inherited debt has been eliminated as stated by the Mayor, Jan Barham. Council now has a Loan Program to deliver much needed facilities and infrastructure including new sewerage plants, library, sports fields, facility upgrades, childcare centre etc. 

 

False accusation 2.

Council has a $42 million debt FALSE

Response
There are loans for $33.7m  for current and future works programs

( Combined General, Water and Sewer Fund with fully planned servicing in place).

These loans will deliver to the community the much needed infrastructure and facilities – see table below

   
LOAN PROGRAM / DEBT OUTSTANDING – as at 30 June 2008

General Fund

Water Fund

Sewer Fund

TOTAL
$12,328,757
$59,250
$21,371,049
$33,759,056
     

False accusation 3.

We are paying $3.4 million in interest - FALSE

Response

There is actually $3.9m for interest and $2.8mto repay loans principal in 08/09.  This  funding has been planned & accounted for over the life of the loans. Byron Shire has a low Debt Servicing Ratio in relation to the state average. The establishment of loans is a normal practice for government to deliver infrastructure. General Fund loans made possible via the rate increases..

 
BUDGETED INTEREST PAYMENTS in 2008/09

General Fund

Water Fund

Sewer Fund

TOTAL
$1,361,652
$3,416
$2,580,384
$3,945,452
 

False accusation 4.

.Council has raised an extra $22 million  in rate rises over four years - FALSE

Response

Council has raised $5.7m in the term. (Thisincludes the State Government increase)

 
TOTAL INCREASE from 2004/05 to 2008/09
%
Amount

Pegged increase

17.2
$2,040,961.00

Special Rate variation

33.2
$3,689,317.00
TOTAL Rate Revenue
50.4
$5,730,278.00
 

False accusation 5.

Our rates have increased almost 70%  -  FALSE

Response

Council has increased rates by 50.4% in this term(including the annual NSW Government rate pegging) Council has increased rates each year to bring Byron Shire up to the state average. For many years our rates were well below other councils and with a low population base and high tourism numbers the overall funds collected are still low but Council is now in a strong financial position. 

Council’s rate history

2003 average rate =  $576               2008 average rate = $871

 

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