Gold Coast council budget 2021: Everything you need to know
A Gold Coast City councillor is furious about having to spend $12m on subsidising state public transport in the fast-growing northern suburbs - accusing the state government of dropping the ball.
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A Gold Coast City councillor is furious about having to spend $12m on subsidising state public transport in the fast-growing northern suburbs.
However, the state government says the state’s second-largest council is big enough to go it alone if it “genuinely believes it is a high priority”.
Council’s annual report 2021-22 released as part of Wednesday’s budget shows, for the first time, the city is “subsidising bus services in the northern Gold Coast to improve accessibility”.
Deputy Mayor Donna Gates could not hide her disappointment when asked by the Bulletin about council funding public transport.
“We, as a council recognising all the problems, have committed $12m over the next four years for rapid bus services in northern Gold Coast,” Cr Gates said.
“We did that after our officers had been in consultation with the state, and we understood they might match that $12m with $12m of the state’s funding.
“It was our first entry into a commitment for public transport other than light rail at $12m over four years and we are yet to see the state come up and match that funding.”
Councillors agreed to the public transport upgrade in April after a report confirmed the northern bus services were “lousy”.
The city’s highest patronage services cater for buses every eight minutes between Broadbeach south to Tweed Heads, and 15 minutes between Helensvale and The Spit and Broadbeach to Robina train station.
Some of those buses operate from 6am to midnight. By comparison, only eight routes operate in the north across three corridors between Helensvale and Pimpama. Weekend services are as few as four.
“So we’ve had to step up because of the situation our residents are experiencing and let the state put their money where their mouth is,” Cr Gates said.
“Because it’s one thing to say in a private meeting that if you can get this funding, you can match it. We want to see it on the table.”
Transport Minister Mark Bailey fired back at council’s claim it had been forced to do the heavy lifting for the bus route.
“As the second-largest council in Queensland, the Gold Coast City Council is certainly in financial position to fully fund this initiative themselves if they genuinely believe it is a high priority,” he said.
“Covid-19 has seen patronage drop significantly on public transport, which has to be taken into account on where we invest in new services.
“The Palaszczuk government and Gold Coast Council have worked well together over the past few years to deliver better transport for the Gold Coast, and we’ll continue to do that for its growing northern communities.”
DEBT TO HIT $390M
GOLD Coast City Council debt will blow out by $390m in the next five years as new roads, light rail extensions and facilities are built to cater for a population boom and the Olympics.
The council’s annual plan 2021-22 says the city is “focused on responsibly managing debt in the short and long-term”, but it must deliver several major infrastructure projects to beat traffic congestion.
The debt will increase from $604m in June 2020 to a peak of $894m in June 2025.
“Debt is then projected to decrease back to $737m by June 2032,” the council plan says.
Despite the increase in debt, the annual cost in servicing it is “forecast to remain fairly steady”, increasing from $110m in 2021-22 to $113m in 2023-24.
The council has new borrowings of $131m for 2021-22, representing about 21 per cent of the total capital works program of $627m.
Total debt will increase by $51m in 2021-22 reaching $689m by June next year, taking into account principal repayments of $80m.
When asked after delivering the council budget on Wednesday whether he wanted a better financial outcome, Mayor Tom Tate pointed to the council’s work in earlier terms to reduce historic debt.
“On that, in 2011, the debt was $863m. And we paid it down substantially, $250m to now,” he told the Bulletin.
“In projection there, I think it’s about investment in our infrastructure. We are pre-empting spending there, post the 21 July (Olympic bid) announcement. I’d rather borrow money and if it is joint funding, whether it’s light rail Stage 4, other infrastructure, invest and do it so as we go to 2032.
“At the same time, the rates increase will be kept at CPI.”
But Cr Tate said the council would face challenges if the state government ended a waste subsidy to local governments worth about $20m annually.
“Well that’s different. Looking at the crystal ball, that’s assuming that the rates subsidy is not lost. And if the rates subsidy is lost, then there are only two ways – you borrow or you pass on as a waste levy, and I will tag it as a state government charge,” he said.
“I think it will be around $80 (per ratepayer), quite substantial. That’s why we have to work hard towards (resolving) that.
“As we work forward I think with a broadening income – we are broadening the base this year to $1.8bn. By the time you go there (in a few years), it will be a $2bn budget.
“To have that debt maintained at the 2011 level – I’m not alarmed at it because of the investment in infrastructure.”
Gold Coast Residents and Ratepayers Association president Tom Bleier said he was unsurprised by the subsidy announcement.
“I’d like to see some more background on it, I don’t think they’ve done enough to justify these sort of costs,” he said.
“I’ve been waiting for something like this to happen on the Gold Coast because it’s an area (council) haven’t hit yet, they’ve hit water and things like that.”
MAYOR’S CHALLENGE OVER COOMERA CONNECTOR
MAYOR Tom Tate has challenged the State Government to match the council’s record spend on transport infrastructure, warning the city will struggle to cope with its growing population.
More than $200 million will be spent on road upgrades this year as part of a $331.8 million transport commitment. It includes $11.8 million for the light rail extension to Burleigh.
But Cr Tate said the State Government needed to fast-track its own funding to decongest the city.
“The State budget is pro-transport, from light rail to new heavy rail stations and road upgrades. Our budget is equally pro-transport with a record amount to be spent on all forms of transport improvements for our city,’’ he said.
“My message to the State Government is: It’s great to see these funding commitments but we need boots on the ground building light rail, and excavators pushing through the Coomera Connector.
“Work must start on both these projects ASAP and if we are successful in hosting the 2032 Olympics, time is critical so let’s get the shovels out now.’’
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He was backed by Deputy Mayor Donna Gates who said it was a “major disappointment” the State Government had not matched council’s $12 million in funding for a rapid bus service in the city’s far north.
“We are yet to see the state step up and match that funding and that has forced us to do more.
“The state must put its money where its mouth is.”
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Transport Minister Mark Bailey hit back, saying the Gold Coast had enjoyed an “infrastructure bonanza” under the current government.
“I’m just as keen to get shovels in the ground as the Mayor is, and the good thing for Gold Coast residents is that they can be assured they won’t have to wait much longer to see that happen,” he said.
“I handed down Queensland’s sixth record roads and transport budget in a row last week, and that included funding for two more huge projects for the Gold Coast - construction of the next stage of light rail to Burleigh and stage one of the Coomera Connector (second M1).
“We’ve always said construction on both of those massive projects would start this year and that time line hasn’t changed.”
MASSIVE SPEND ON HOTA
A PERFORMING arts theatre, studio and digital spaces are planned for HOTA as the arts centre bagged almost $26m in Gold Coast City funding.
Wednesday’s $1.83bn budget delivered $33.74m to culture and arts citywide.
Of the $25.73m earmarked for HOTA, $19.78m will be spent on “ongoing management, maintenance and asset acquisition programs”, and a further $5.75m will go towards planning and design for multiple new infrastructure projects at the Bundall site.
The art gallery opened to the public on May 8.
“The City’s continued commitment and investment in HOTA has put the Gold Coast at the forefront of new cultural experiences in Australia,” a HOTA spokeswoman said.
“In the first six weeks over 42,000 people have visited the new HOTA gallery and as the precinct continues to evolve we are proud to be contributing to the civic, economic and creative growth of the Gold Coast.”
Council’s contribute to HOTA for operating costs will increase by $2.8m for 2021-22.
A Bulletin report in February showed HOTA’s $20m operating budget was forecast to balloon to $32m in the coming financial year.
It is understood the increase in expenditure is a result of the HOTA gallery opening, and additional security and maintenance costs.
Mayor Tom Tate said the gallery was the Gold Coast’s answer to the Eiffel Tower at its opening in May.
Details of HOTA’s final stage are expected to be unveiled in coming months, as council staff complete the next round of designs.
Mayor Tate said the budget funds had been held over from savings from the gallery’s construction, but remained tight-lipped on the next stage.
“The next stage of HOTA is very exciting but I think I’d better share with our councillors before I go out and talk to media,” he said.
A Bulletin report in March revealed upgrades could include a “mix of the latest digital technology” including holographics.
HOW MUCH RATES ARE GOING UP ON COAST
MOST Gold Coast ratepayers are facing a 2.5 per cent rates rise as council chose only to pass on the CPI increase, following last year’s “compassionate” Covid freeze on costs.
But the Coast rate increase — council says it will be less than $1.50 a week for most property owners — compares much better to Brisbane which handed down a 3.75 per cent hike to its ratepayers.
The Coast’s 2021-22 $1.8 billion budget compares to $1.7 billion last year where the average rates bill had been kept to about $1600.
Mayor Tom Tate when delivering his 10th budget speech at the Evandale Chambers from 10am on Wednesday was upbeat about the average general residential rate increase of 2.5 per cent and tracking of the city’s economy.
“That equates to $1.44 per week which is one litre of fuel at the bowser. In my view, the trend has now been set for a low-rates budget future,’’ Councillor Tate said.
The budget which has the full support of councillors was framed without a chief executive officer after first long serving boss Dale Dickson failed to retain his job and was replaced by Brisbane bureaucrat David Edwards who shortly after his appointment quit for health reasons.
Experienced council officer Joe McCabe oversaw the special budget sessions, much of them held in closed session but none pf the later resolutions suggesting any major disputes between councillors.
The council faces major challenges in framing its next budget — a new CEO must be appointed, and the State Government is dumping a waste subsidy.
New roads will be needed to connect up with the Coomera Connector, light rail to be expanded south to the airport and facilities to be created if southeast Queensland wins the 2032 Olympic bid.
Cr Tate told councillors: “This budget has been one of the most challenging budgets I have ever worked on. It has been a true balancing act with a focus on protecting livelihoods and lifestyle as we see the green shoots of Covid recovery starting to come through.
“Last year, we worked hard to formulate a compassionate budget that dealt with unprecedented challenges. The budget before us today again delivers value for money, while also providing economic stimulus.
“It’s a Back-to-Basics Budget and one I want to tag as TEAM GOLD COAST. Our focus on roads, transport and infrastructure hasn’t changed and neither has our focus on low rates.”
The council last year provided a rates freeze through a $64 rebate for 138,000 owner occupied ratepayers to assist families through the challenges of Covid-19 which included in a $26.2 million assistance package to help businesses and residents.
“That budget (2020-21) was labelled a compassionate budget. Today’s $1.83 billion budget is titled Team Gold Coast as it has been a real team effort for us to again achieve such a great outcome for ratepayers, business and the economy,” Cr Tate said.
“I thank all councillors and the administration for their commitment and focus. At the start of 2021, the city’s unemployment rate was 6.1 per cent. Today, it is 4.7 per cent.”
Highlights of the 2021-22 City Budget include:
* Safe drinking water — $286.5 million;
* Waste collection and recycling — $110.6 million. Sewerage systems and services — $233.9 million. City cleaning — $18.7 million;
* Transport (roads, cycleways, transport improvement, parking regulations) — $331.8 million;
* Community Centres — $19.4 million;
* Beaches, waterways and lifeguards — $43.9 million;
* Tourism marketing and management — $30.7 million StudyGC — $3.025 million. Tourist parks and campgrounds — $20.3 million;
* Major EventsGC — $11.8 million. Culture and arts — $33.7 million;
* Natural environment (including conservation, parks and recreation) — $159.7 million.
“I thank the community for helping shape our 2021-22 budget. Our annual budget survey attracted 3462 formal responses and 57,378 social media poll votes,’’ Cr Tate said.
“The community’s voice told us what to focus on and we have done that in every aspect.’’
‘WE’RE NOT OVERSUPPLYING DOLLARS’: SURPRISE BUDGET SNUB
COUNCIL-controlled entities including Destination Gold Coast will not receive extra funding in Wednesday’s council budget.
Tourism funding will remain steady for the second year in a row as council takes a wait-and-see approach to future events.
But Mayor Tom Tate has not ruled out a surprise mid-year cash splash on the city’s biggest industry if international borders reopened.
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“This has been an intense budget deliberation and we have thought very carefully about funding for everything from Destination Gold Coast to the Bleach Festival and our film incentives,” he said.
“We have made sure there will be enough funding for them to deliver on their key performance measures without oversupplying the dollars.
“I didn’t say no to them, just not right now. However, if borders do open we will be able to ramp (funding) up.”
Destination Gold Coast controversially missed out on extra funding last year when Cr Tate blasted its presentation as “underwhelming”.
Dubbed the “back to basics” budget by Cr Tate, this year’s budget will include $200m for road and footpath upgrades, with a particular focus on new sliplanes and road widenings.
This year’s $1.83bn council budget will also have increased spending on city cleaning, recycling and waste collection.
The Bulletin understands the average rates bill will increase by 2.5 per cent, about $1.50 a week extra for ratepayers.
It follows last year’s one-off Covid-19 “rates freeze” which kept rates bills at below $1600.
Cr Tate said city leaders had found significant savings when going line-by-line through the budget as a result of many events not being held in 2020 because of the pandemic.
He said the recently opened Home of the Arts (HOTA) gallery had come in $5m under budget.
“This money has been reprovisioned in the budget,” he said.
However, this year’s budget will not contain any significant new funding for major infrastructure projects including light rail Stage 4.
It is understood council is holding off on committing funding until the July 21 announcement on whether southeast Queensland will host the 2032 Olympic Games.
EXCLUSIVE: $200M REVAMP FOR COAST ROAD NETWORK
A RECORD $200 million for upgrading the Gold Coast’s road network and a rates rise in line with inflation will be hallmarks of this week’s council budget.
Dubbed the “back to basics” budget by Mayor Tom Tate, new road and footpath upgrades, including slip lanes and bridge widening works will be at the heart of big spending, targeted at relieving the congestion and growing pains from the city’s spiking population.
This year’s $1.83 billion council budget – which Cr Tate called “back to basics” for “team Gold Coast” – also has increased spending on city cleaning, recycling and waste collection.
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The Bulletin understands the average rates bill will increase by 2.5 per cent, with households paying about $1.50 more per week.
Cr Tate – whose three terms have been characterised by his commitment to inflation-linked rates increases if any – said the rates increase would be “about a third of a cup of coffee”.
“What Gold Coasters have come to expect, and should expect, is that city rates increases will be at CPI or below and this will be the 10th budget in a row where the rates increase will be at, or below that figure,” he said.
“It will also be well below Brisbane’s 3.75 per cent increase announced just last week.
“The last 18 months has challenged our city and global economies like never before.”
It follows last year’s one-off Covid-19 “rates freeze” which kept rates bills at below $1600.
Cr Tate said managing the city’s recovery from Covid-19 was critical.
“We are a city that thrives on confidence, buoyed by small business investment, global tourism and construction,” he said.
“As the city delivers its 2021-22 budget, I know that the tough decisions made as far back as 2012 have sown the seeds for the fiscal rewards of today.”
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However, this year’s budget will not contain any significant new funding for major infrastructure projects including light rail stage 4 or a proposed boutique stadium.
It is understood council is holding off on committing funding until the July 21 announcement on whether southeast Queensland will host the 2032 Olympic Games.
Cr Tate said council held significant funding in reserve which would be committed at a later date, naming the tram to the border extension as a priority.
“We will be watching with great anticipation on July 21 and, should we be successful, we are going to need joint funding from all three levels of government,” he said.
“All levels of government will need to step up because we may as well get the legacy in place before the Games.”
Originally published as Gold Coast council budget 2021: Everything you need to know
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