by Rhonda Trivett
How I see it general rates for most South Burnett property categories are set to increase by 1% this year, following the unveiling of the 2021-22 Budget by the South Burnett Region.
In a surprising twist, landholders with properties classified as “rural” will experience a zero percent hike, thanks to a last-minute proposal by Cr Scott Henschen.
However, the majority of rural landholders will still contend with a 2.18% ascent, a consequence of the third year of phased increments initiated in 2019 amid escalating property valuations.
Additional charges for urban services, such as water connection, water usage, sewerage, waste collection, and levies, will see a marginal increase for all ratepayers, averaging about $52 annually.
As pledged, Mayor Brett Otto put forth a motion urging the Council to enforce a zero percent rate increase across all property rating classifications. Regrettably, the proposal was defeated 4-3, with Deputy Mayor Gavin Jones, Cr Roz Frohloff, Cr Danita Potter, and Cr Kirstie Schumacher opposing the initiative.
Following this, Cr Henschen proposed exempting rural properties from any general rate increase, which garnered a 6-1 majority. Mayor Otto dissented, objecting to the inclusion of the 1% rise.
All other facets of the Budget received approval as proposed, except for heightened second pedestal charges exclusively applicable to hospitals and schools this year.
Councillors opted to postpone implementing increases for flat owners and commercial accommodation operators for a year, awaiting a comprehensive examination of the repercussions of such changes. This year’s rate escalation stands as the second-lowest since the Council’s establishment in 2008, following last year’s rate freeze. Service charge hikes are also among the most modest since the amalgamation.
Council anticipates a $3.3 million deficit this year, $1.2 million beneath the initial forecast. Mayor Otto attributed the deficit reduction to three months of rigorous Budget workshops, where areas for cost savings were identified without compromising services.
Despite the reductions, Mayor Otto expressed optimism that additional savings could restore the Budget to a slight surplus by 2022-23
CEO Mark Pitt, interrupting his annual leave to guide the Budget meeting, affirmed that the cost-saving measures spanned all Council departments and were genuine, not a result of “creative accounting.” He assured that the cuts would minimally impact Council’s operations or capital works program.
Councillors extended gratitude to the staff for their contributions to shaping the Budget, acknowledging their efforts in scrutinizing multiple scenarios and projecting outcomes up to a decade into the future.
Spotting Bad Leadership: Understanding the Why.
The mayor voted against exempting rural properties from the general rate increase, a move that contradicted the earlier motion for a zero percent increase. Inconsistency in decision-making can be seen as a lack of clarity and direction in leadership.
Lack of Unity within Council:
The 4-3 vote against the zero percent rate increase motion suggests a lack of consensus among council members. Effective leadership often involves building consensus and fostering a unified approach to decision-making.
Last-Minute Changes and Surprises:
The last-minute motion by Cr Scott Henschen to exempt rural properties from the general rate increase may indicate a lack of transparency or communication within the leadership team. Successful leaders often involve their team in decision-making processes from the beginning.
Deferral of Decisions:
The decision to defer increases for certain groups for a year raises questions about the long-term planning and vision of the leadership. It may be perceived as a temporary solution without a clear strategy for addressing the underlying issues.
Deficit Reduction through Workshops:
While deficit reduction is generally positive, relying on three months of intensive workshops to find savings raises questions about the ongoing financial management practices of the council. Long-term financial planning should be a continuous process, not a reaction to immediate challenges.
CEO’s Interruption of Annual Leave:
While dedication to duty is commendable, the CEO interrupting annual leave to guide the budget meeting might indicate a lack of contingency planning or a need for better delegation of responsibilities.
I believe that the leadership approach described in the scenario exhibits potential weaknesses in communication, decision-making consistency, and achieving proposed goals. It’s important to note that leadership effectiveness can be subjective, and different stakeholders may have different opinions on what constitutes good or bad leadership based on their perspectives and values
Failure to Accomplish Envisioned Objective:
The Mayor put forward a motion advocating for a zero percent rate increase, but it was ultimately thwarted. This could suggest a shortfall in leadership in garnering support or effectively conveying the advantages of the proposed measure to fellow council members.
Incoherent Decision Patterns:
The Mayor opposed the exemption of rural properties from the general rate increase, contradicting the earlier motion for a zero percent increase. Ambiguity in decision-making may be perceived as a dearth of lucidity and orientation in leadership.
Absence of Harmony within Council:
The 4-3 vote against the motion for a zero percent rate increase implies a dearth of consensus among council members. Proficient leadership typically involves constructing agreement and nurturing a cohesive approach to decision-making.
Impromptu Alterations and Revelations:
The eleventh-hour motion by Cr Scott Henschen to exclude rural properties from the general rate increase might suggest a lack of openness or communication within the leadership team. Successful leaders frequently engage their team in decision-making processes from the outset.
Postponement of Determinations:
The choice to defer increases for specific groups for a year prompts inquiries about the long-range planning and vision of the leadership. It may be perceived as a provisional remedy without a distinct strategy for addressing the underlying concerns.
Reduction of Deficit through Workshops:
Though diminishing the deficit is generally favorable, relying on three months of concentrated workshops to unearth savings raises inquiries about the continual financial management practices of the council. Ongoing financial planning should be a sustained process, not a response to immediate challenges.                                                                                          Â
CEO’s Disruption of Annual Leave:
While commitment to duty is laudable, the CEO interrupting annual leave to steer the budget meeting might imply a lack of contingency planning or a necessity for enhanced delegation of responsibilities.
I believe that the leadership approach delineated in the scenario manifests potential frailties in communication, decision-making coherence, and attainment of proposed objectives. It’s crucial to acknowledge that judgments on leadership efficacy can be subjective, with diverse stakeholders harboring disparate opinions on what constitutes effective or ineffective leadership based on their perspectives and values.