Mayor seeks to clear confusion on council finances
BUNDABERG Mayor Mal Forman said comments posted in an online release distributed by mayoral candidate Troy Madle and Division 8 candidate Tracey Jackson contained outdated and inaccurate information.
"Mr Madle states, if elected, he would request the CEO to seek 'urgent, expert advice on the current and future sustainability of council's financial situation'," he said.
"Regarding council's financial capacity for borrowings and financial sustainability, I can advise all candidates and residents that in early 2015 the Queensland Treasury Corporation (QTC) completed an expert, independent credit review of council's finances and its 10 year forecasts.
"This review clearly indicated the council would remain financially sustainable while continuing a comprehensive infrastructure development program for the region.
"Further, council has a 10-year capital and operational forecasting model which makes provision for the delivery and operation of the Rubyanna project.
Cr Forman said the 10-year modelling program was provided to QTC and the Department of Local Government and Planning to review annually.
"It's pleasing to see Mr Madle has been reading council's online information relating to its annual reports and budget documents which can be viewed by any community member at http://www.bundaberg.qld.gov.au under the 'council' tab," he said.
"The candidate is correct in stating that council had an amount of $32 million identified in its proposed borrowings for the current financial year.
"The proposed schedule of borrowings was based on the Rubyanna project costing $93 million.
"The reality is that due to rigorous pre project planning and best practice tendering methods the project has been revised down to $71 million.
"Just $2 million will be borrowed this financial year and an estimated $15 million in 2017/18," he said.
Mr Madle said he and Ms Jackson were really pleased Cr Forman and the current councillors were interested enough in their campaigns to read their Facebook posts.
"We thank the mayor for attempting to clarify what the council borrowed this financial year and what it proposes will be borrowed in the next two financial years, but we're still a bit confused," he said.
Mr Madle said the media release on the council's website said just $2 million would be borrowed this financial year and an estimated $15 million in 2017/18.
That was a total of $17 million in borrowings.
But he said the story in the NewsMail about work starting on Rubyanna confirmed only $2 million had been borrowed this financial year, but said borrowings were estimated at "$31 million for the 2016/17 year and $14.5 million for the 2017/18 year".
That was a total of $47.5 million in borrowings.
"The community is entitled to know what the council's total debt is this financial year, how much interest we'll accrue this year, what the council estimates our total debt will be in each of the next two years and how much it estimates we'll accrue in interest in each of those years," he said.