Webmaster note: there are easy promises, and there’s hard reality. It’s worth comparing the 2011/12 Council’s revenues on camping grounds: $ 27,678… with the recorded expenses: $157,574
There we go for the “potential for ongoing savings for the council in terms of maintenance and fees charged at camping sites”, announced by Ms Noon, the previous CEO.
Cr Liu had seen the writing on the wall with regards to State grants, but as usual the Mayor and other councillors (except Cr Walkom and ex-Cr Chirgwin), would not listen to his advice.
Ratepayers will notice too the Council’s answer: “The report will be available once it is completed.“… to Cr Liu’s question: “When will this report be available for Council consideration?”
Now we know.
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As you are aware, Council in July 2010 with a $2.6 Federal grant upgraded all its camping grounds and visitor facilities on the Island and constructed walking trails. While there have been much positive feedback on the new shelters and BBQs, the community remains sceptical as to what positive economic impact this would have on the Island and the number of jobs which was said would be created from the investment as announced by Council.
(webmaster: refer to the front page of The Islander 15/7/2010, reproduced at the bottom of this page with Cr Liu’s highlighting)
From what I heard from the ratepayers, their main concerns are the costs which will be needed to operate and maintain these upgraded facilities and the liability of replacing them in the future. For this reason, I sought a reply to my questions below.
Cr Ken Liu
Kangaroo Island Council
P O Box 80, KINGSCOTE SA 5223
Ph: (08) 8553 2823 Mobile: 0428 322 005
Email: kenDOTliuATbigpondDOTcom
Questions on Notice
September Meeting of Council (12/9/2012)
Re: Camping & Visitor Facilities
Cr Liu’s Question 1
Media releases in July 2010 on the $2.8M camping and visitor facilities upgrade stated that more than 20 local jobs were expected to be created during construction, with a further 26 ongoing jobs on the island, including potential traineeships and further that if there was a modest increase of between 5% and 10% in visitor expenditure, this would create between 26 and in excess of 50 sustainable jobs.
How many ongoing jobs on the Island have since been created from this $2.8M project and does Council have any data or information to measure or substantiate these encouraging economic outcomes?
Council’s answer:
Council is unaware of any ongoing jobs that may have been created from this $2.6M project. We can confirm that there have been no additional jobs created within Council by the project. Any employment figures predicted are estimates of employment growth based on established economic principles and therefore a factor of the $2.6M capital input into an economy utilising a multiplier effect.
Question 2
What were the revenues received from camping grounds provided by Council for the 2009-10; 2010-11and 2011-12 financial years?
Answer:
Noting that the facilities were in construction November 2010 to June 2011. Fees were dropped to reflect the works in progress and fees were not amended to reflect the new facilities until the Fees & Charges Review adopted by Council at the January 2012 Meeting, thus there was a drop in fees between 2009-10 and 2010-11 and then a rise (but not a full rise) during 2011-12.
2009-10 $ 20,321
2010-11 $ 16,305
2011-12 $ 27,678
Question 3
Of the revenue received during 2010-11 and 2011-12 financial years (question 2 above), how much extra income was generated from the additional new camping sites?
Answer:
The new campsites (additional to the refurbished old sites) are Emu Bay and Duck Lagoon.
Income was only received from these sites in 2011-12.
Emu Bay $ 1,351
Duck Lagoon $ 66
Question 4
What were the expenditures incurred by Council during the same periods in maintaining and servicing of these facilities and the collection of camping fees?
Answer:
The record of operating expenditure is more difficult to extract due to the expenses being consumed within the public amenities, and parks and garden expenditure areas. The records for campgrounds specifically reports the following costs:
2009/10: $660,
2010/11: $3,167,
2011/12: $157,574.
Note that 2011/12 was the first year in which costs were recorded according to districts and sub functions in an easily distinguishable way. To extract specific campgrounds only information for 2010-11 we will need to perform a transaction by transaction dissection to identify which relate to campgrounds as distinct from parks & gardens or public amenities.
Question 5
What is the budget income and expenditure for the current financial year on Council’s camping grounds and visitor facilities?
Answer
This information is available within the Adopted Annual Business Plan published on the Council’s website. Budgeted income is $32,950 and Expenditure is $128,007.
It is accepted that income collection from the “honesty” system of “Iron Rangers” is not working the way it is intended and that this methodology and effective marketing of the facilities is going to be essential to close the gap between expense and income.
It is worth noting that the Campgrounds budget also includes BBQs (at those sites only) and maintenance associated with day facilities (at those sites only) as well and this infrastructure can currently be utilised for free as a Community service.
BBQ’s / shelter sheds etc not associated with a Campground site are budgeted for under Parks and Gardens budget – again provided for free as a Community service.
Question 6
Council staff has been working on several options to collect extra revenues from the upgraded visitor facilities with a view to recoup some of the additional maintenance and operating costs incurred by Council. When will this report be available for Council consideration?
Answer
The report will be available once it is completed. Work priorities are continuously changing due to circumstances largely outside of the control of Administration. As discussed at the Workshop where we briefed Councillors on Work Prioritisation for 2012-13, ad hoc demands greatly influence our ability to meet planned work targets and Council input on work prioritisation of these ad hoc requirements will be sought moving forward.
Question 7
Does Council have a business plan and/or a long term financial plan for the upgraded camping and visitor facilities which may be published on its website or available for public inspection?
Answer
No – not at this time. It is expected that this will be an outcome of the work carried out reviewing options for additional revenue generation.
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The Islander: Happy campers
by SHAUNA BLACK
15 Jul, 2010 04:20 PM
The Kangaroo Island Council has received $2.6 million to upgrade camping and visitor sites across the island from Brown Beach to Snellings Beach.
In what is believed to be the biggest single grant to the island since the South Coast Road was sealed, the Federal Government has granted the money under its economic stimulus Jobs Fund.
The work, to be completed this financial year is estimated to create 22 full-time equivalent jobs over that time and, according to economic modelling by Adelaide company EconSearch, it will create up to 50 ongoing jobs from an increase in visitor expenditure of between 5 and 10 per cent.
“This is a win for the entire island community and our visitors who will use these sites in the future and the positive financial impact this will have on the island businesses,” Mayor Jayne Bates said.
The council’s chief executive officer Carmel Noon said the money would implement a large part of the council’s Camping and Day Visitor Strategy, a document completed at a cost of about $20,000 in 2008.
A previous application for funding for the strategy under a regional infrastructure stimulus program had been unsuccessful.
The council had since budgeted to complete one item from the strategy this financial year – a new bridge at Western River Cove.
Ms Noon said the council had planned to budget up to $150,000 a year to projects in the strategy which would have taken 20 years to complete.
The projects will include revegetation, wind-powered dry toilets, gas barbecues, solar lighting, waste stations, shelters, water tanks, parking facilities, fencing and control barriers at Vivonne Bay, Hanson Bay, Western River, American River, Snellings Beach, Brown Beach, Muston Lookout, Emu Bay and Duck Lagoon.
Ms Noon said the project had potential for ongoing savings for the council in terms of maintenance and fees charged at camping sites.
“Spending money on plans and strategies can be a frustrating process when all you can see at the end is a set of plans but in order to get these sort of grants our projects need to be so-called shovel-ready and this council has been focusing on that,” Ms Noon said.
“The standard of our visitor facilities is high on the list of things that tourists complain about, along with roads obviously, so we believe this project will have a positive impact on visitor experience and peoples’ decisions to visit again.”
Federal Infrastructure Minister Anthony Albanese said the council was to be congratulated on its detailed planning work and for submitting a comprehensive proposal to the government.
Ms Noon said the Federal Government had recognised the work done by the council in its asset management plan and in “tidying up its own backyard”.
She said most councils had to make a co-contribution for funds towards such grants but Kangaroo Island Council had not.
“I’m confident the State Government will soon come to the table with some answers to the options we have put to them about the future sustainability of the island, which we know is being discussed at ministerial level,” Ms Noon said.
“We’ve been trying to work with the SA Tourism Commission for more than two years on a list of priorities for tourism infrastructure on the island and not getting too far. They are constrained in how much they can help by the funding given to them by the State Government but if they are using Kangaroo Island as the main attraction for people to come to South Australia then they need to support that,” she said.
The $2.6 million grant will be managed in-house by the council with work contracted out.