For the next few weeks, it going to be all budget all the time with the SDRC. The mayor and the eight other councillors are chin-deep in negotiations of how to divide the financial pie, line by line. Consultation with residents has been sought and will be taken into account. But this budget, like most budgets in history, will be a mix of pain and pleasure.
So, what is it looking like so far?
First, here is the (much simplified) bottom line from last year's budget which indicates the narrow space between what council brings in and what council pays out. Operating revenue was expected to come to $106,814,000. Operating expenses were estimated at $106,861,000, leaving the budget in a $47,000 deficit. However, the unaudited actuals (the real income and costs versus what was estimated last year) indicated increased revenue which put council back in black by about $5 million.
The unexpected surplus was due to extra grant funding which may not repeat itself next year. So, expect some increases in fees and charges.
Rate changes
The just-released federal government’s budget didn’t give local governments a more equitable share of the tax proceeds which councils across Australia have been trying to claw back for years. Now it looks like ratepayers on the Southern Downs will get a bigger bill.
In the SDRC’s draft budget brochure, put on the website to inform residents, there is a page entitled “This Year’s Proposed Rate Changes”. “Residents often ask why their rates bills are higher here than in South East Queensland or Toowoomba” the brochure asks.
The answer is multi-dimensional. For one thing, products council needs to build roads and maintain infrastructure cost more than in the city. The Consumer Price Index is 1% higher in regional areas than in capital cities. Furthermore, the Southern Downs is servicing a huge geographic area, with less population, more roads, and significant issues with water, waste and infrastructure. “To ensure Council lives within its means and delivers the basics well, council is proposing a budget with the following increases. Capping will still apply to those properties that had a category change in the 2024-2025 full rates review.”
This is what is on the table:
Principle place of residence rate increase – median 3.5 % increase or $1.00 - $4.80 per week
Non primary place of residence general rate - $5.90 - $9.50 per week
Primary production properties general rate – median 5.3% increase
Non-residential properties general rate – median 5.6 increase.
Furthermore, council is proposing to introduce a new rating category for properties that are not a person’s principal place of residence. That new category will apply to holiday homes, rental properties, and other situations where the property owner does not reside at the property, with the majority paying an additional $5.90 - $9.50 a week. Businesses with a residence are not part of this category.
The Brisbane City Council has a similar ratings category which applies = Airbnb (and similar) owners.
Water cost rises
Council expects there to be a 9.25% water utility charge increase to meet the demands of water security, infrastructure, and cost recovery. The graph below outlines the proposed rate changes.
Other big-ticket items
On council’s to-do list this year includes $500,000 for improved customer service, a new grants policy, a simplified leasing process, and preparation for natural disasters.
Council will also spend $40.7 million on a range of infrastructure including upgrading water and sewerage in Warwick, re-sheeting unsealed roads, renewal of water mains in 8 towns and villages, upgrade the water treatment process in Stanthorpe, renew the recycled water mains, uprate UV treatment systems in villages, dam safety upgrades to two dams, new waste collection contracts, repair and reseal roads, build the new Cox Bridge, upgrade WIRAC.
Council will spend $1.7 million on building the Rosehill Road pathway, connect more footpaths, design playgrounds and increase shade, improve accessibility to the Allora pool, increase spending on parks and open spaces.
Council will spend $250,000 to deliver a financial sustainability strategy to “ensure best use of community funds and strong financial reserves”, deliver “an integrated risk framework”, review local law to ensure council is using best practice, increase cyber security and upgrade ICT systems.
Council will spend $355,000 to deliver a new economic development strategy, implement the events strategy, delivery a new 3-year-industry association funding agreement, support new product development in the tourism industry.
What won’t change is that council will continue to spend about $21 of each $100 it spends on roads and maintenance; $20 on water and waste water; $17.64 on planning, environment and waste management; $12 on governance and administration. The final budget will be adopted around July this year.
