Savings leave council short

By Ed Merrison
A DECISION to rein in cost increases will leave Knox City Council needing to find an extra $227,000 to provide long day childcare over the next year.
Following a split vote at last Wednesday’s council meeting, Knox mayor David Cooper used his casting vote to pass a motion capping the increase to the services at 10 per cent rather than a proposed 20 per cent hike.
The decision marked the only alteration made as the council voted to adopt its proposed fees and charges for the 2006/07 budget. By capping the increase at 10 per cent, the council has reverted to a November 2004 undertaking from the previous council to implement successive 10 per cent increments over three financial years commencing in July 2005.
The increases were proposed as a means of achieving a balanced budget by 2007/08 but were subsequently upped to 20 per cent for 2006/07 and 15 per cent for 2007/08 after council officers took additional, unforeseen factors into account.
These included the cost of maintaining appropriate staff to child ratios and meeting other regulatory requirements, fluctuating rates of use and the escalating cost of consumable goods.
But Taylor Ward councillor Tony Kamitsis proposed the cap, saying the ‘massive increases’ were unfair on parents after a commitment was made to limit them to 10 per cent per year.
Even so, Cr Kamitsis said he was in favour of user pays schemes within reasonable parameters and did not rule out further increases in the future.
“Before anything gets put in place there needs to be consultation and we need to look into the cost of providing the service and why it’s blown out,” he said.
Knox council engineering and infrastructure director Gerard Jose said the cost of providing childcare services across the council’s six centres for 2006/07 was approximately $500,000, and with the cap in place the council will face a shortfall of $227,000 for providing the services.
“Council will continue the delivery of this and other community services through the mix of user fees, operational grants and rate revenue,” he said.
But Dobson Ward councillor Karin Orpen said by giving up on the aim of achieving a self-funded service, the council was sending out ‘mixed messages’.
Cr Orpen said the council provided an excellent service, and community consultation had revealed to her that parents were willing to pay an increased amount for a service they valued.
“At the end of the day, the council has to now find an extra $227,000 that it hadn’t budgeted for.
“I think the council has to be consistent on the messages it gives out in regard to maintaining costs and lowering rate increases,” she said.