Brisbane City Council budget: 'Good debt' for the city

For lord mayor Adrian Schrinner's first budget, the message was clear from the day he took over from Graham Quirk in April - Brisbane is ready for renewal and revitalisation.

It has come at a cost to ratepayers, with Brisbane City Council debt reaching $2.6 billion and rates rising by an average of 2.5 per cent.

But there was good news for first home buyers, with the council extending its rates remission scheme to give them a one-year, 50 per cent rates discount capped at $1000 for properties bought for up to $750,000.

Adrian Schrinner in his first budget lock-up as lord mayor.Credit: Jocelyn Garcia

Handing down the the council's $3.1 billion budget on Wednesday morning, Cr Schrinner said it outlined his vision for the next 10 years.

“The budget will deliver the infrastructure residents need to get home sooner, while protecting our incredible lifestyle and green space,” he said.

“The administration has consistently delivered a balanced and responsible budget for the people of Brisbane.”

The 2019-20 budget released hit ratepayers with an average 2.5 per cent rate rise - after the same 2.5 per cent rate rise in the previous year budget. There will also be an average commercial rate rise of 3.5 per cent.

The council’s fees and charges will also increase 2.5 per cent.

Borrowing increased to $220 million in this financial year, predicted to peak at $360 million in 2020 before declining from 2021.

Its total net debt topped $2.6 billion, or about $2000 per person.

Cr Schrinner said he did not see the debt as a problem but as a fiscal responsibility for the council to invest in infrastructure for the long term.

He refused any speculation that rates would increase next year after staying steady this year and pointed to a change in national accounting standards as significantly altering the council's accounting methods and caused more than 60 per cent of the debt increase.

"You can't build a city without building infrastructure and that is exactly what we're doing here," he said.

"There are different types of debt, there is good debt and bad debt.

"This budget has the good debt that funds long-term infrastructure."

Infrastructure spend will top $818 million for intersection upgrades and congestion projects, with $76 million for congestion in suburbs such as Coorparoo, Ashgrove and Upper Mount Gravatt.

A further $72 million from the infrastructure budget will be put toward suburban street smoothing.

After making short shrift of his predecessor's pet project, the Mount Coot-tha Zipline, Cr Schrinner set about envisioning a greener, cleaner city in the leadup to his first budget.

Cr Schrinner said his budget was "unashamedly" focused on the future including lifestyle infrastructure.

Lifestyle will see a $1 billion investment, covering libraries, pools, events and culture. Work on the Cannon Hill golf course will also begin.

Pledges included a plan to shut down the Victoria Park golf club and create Brisbane's own version of New York's Central Park of more than 40 hectares, with $1 million invested to start community consultation and design.

Cr Schrinner said more than $300 million would be invested to create and maintain suburban parks over the coming year, with 82 parks to be upgraded.

Dividends from City of Brisbane Investment Corporation "future fund" of $20 million will be put toward those parks, with almost $2 million to improve lookouts around the city such as Milne Hill Reserve and Stephens Mountain.

The long-term Oxley Creek transformation project also saw a boost with $5.5 million announced to draft a plan for a 150-hectare green space at the Archerfield Wetlands.

The council’s budget also included $27 million for the city’s cycleways over the coming year, and $386 million for koala research and rehabilitation.

The $944 million Brisbane Metro, which had $708 million budgeted in last year's budget over four years, has been allocated $870 million over the next four years.

After delays in the past year, earthworks are expected to begin in this coming year for the major public transport project. The council will also start intersection upgrades in South Brisbane and the CBD and begin design planning for the underground Cultural Centre station.

Cr Schrinner said the state government still had not signed off on any of the needed approvals that have already delayed the project, but he was confident they would soon.

Public transport saw a $793 million investment, including $32.8 million that will go toward purchasing 60 new buses.

Cr Schrinner also announced the council would prioritise a transport action plan for the north-west suburbs to expand Brisbane Metro to the northside, using federal funds.

CityCats will also see a boost with more than $30 million invested to replace older ferries with six new next-generation double decker ferries.

Other public transport schemes announced included $1.5 million over two years for an electric bus trial, and free off-peak travel for seniors on buses and ferries.

A planned ferry terminal at Howard Smith Wharves will also begin construction in 2020.

Out of Cr Schrinner’s planned $550 million investment for five new green bridges across the city, $6.1 million was allocated in the coming year to begin business cases for four of the bridges.

A business case is already underway for a bridge at Kangaroo Point connecting to the City Botanic Gardens.

Two million dollars has been invested over four years to create a suburban renewal taskforce, modelled on the existing urban renewal taskforce, to revitalise the city’s suburban shopping precincts.

Cr Schrinner said the highly successful urban renewal taskforce had seen major transformation of key sections of the city.

Existing homeowners in flood-prone areas such as New Farm, Wacol, Nundah and Taringa will see new drainage infrastructure and stormwater drainage rehabilitation work.

The council’s flood resilient homes project will continue in the coming financial year.

Small businesses will also gain support as the third tranche of Cr Schrinner’s infrastructure, lifestyle and business budget.

Brisbane’s small businesses will see a $2 million reduction in fees and charges and two small business liaison officers hired to help support the sector.