Economic future of Denmark to soon become clearer as Shire votes on long-term financial plan

Denmark’s future will become clearer on Tuesday as councillors vote on its long-term financial plan headlined by proposed annual rates rises of 4 per cent and a 10-year capital works program of more than $50 million. Aiming to meet the aspirations previously outlined in the Shire’s community strategic plan, Denmark 2027, the 10-year financial plan focuses on economic planning and management. Denmark 2027 envisioned a happy, healthy and eclectic community that embraced creativity, the natural environment and had a strong local economy. The financial plan aims to lay the economic foundations to see it realised. While noting that it is subject to changes, the financial plan identifies key sources of revenue, spending and several risk factors to be encountered over the next 10 years. Making up about 38 per cent of funds spent in the 2020-21 financial year, it forecasts an annual rate rise of about 4 per cent in coming years. “The previous version of the (long-term financial plan) assumed no rates-base growth year-on-year,” it reads. “The updated version has factored in a rates-base growth of 0.35 per cent in the 2021-22 and 2022-23 financial year ... changes in valuations have not been factored into the calculation of rates. Due to subdued growth in fees and charges, coupled with demand to increase asset renewal expenditure and maintain existing service levels, a key assumption of a 4 per cent annual rate increase after 2021-22 is contained within the LTFP.” Fees and charges are expected to rise 3 per cent annually in the first four years under the plan before these rises drop to 2 per cent. Beginning about 2022, $8 million is expected to be splashed on the Denmark Surf Club, with $1m on a mountain bike trail about 2023. Another $4.6 million is also outlined for the civic centre library. In the 2020-21 budget, about 41 per cent of funds came from grants and contributions, which the Shire sees as a potential danger. In a foreword to the plan, Shire president Ceinwen Gearon, pictured, said the new financial plan would help deliver on the vision promised by Denmark 2027. “This long-term financial plan outlines a responsible, balanced and progressive approach to the longer term financial management of our Shire, ensuring future generations inherit a strong and healthy financial footprint,” she said.