North Burnett budget sparks community backlash, council divided
A divided and embattled North Burnett council has passed its controversial budget and 25 per cent rate rise after impassioned speeches from multiple councillors, and a vote that went down to the wire.
Central & North Burnett
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A divided council has handed down one of its most contentious budgets in years, narrowly passing a motion that has drawn sharp community backlash and growing concern over the region’s financial future.
The North Burnett Regional Council officially adopted its 2025/2026 budget at the July 7 meeting, which included significant increases to rates, fees and charges.
The motion narrowly passed 4:3, with Mayor Les Hotz, councillors Michael Dingle, Susan Payne and Renee McGilvery voting in support and councillors Trina Vaughan and Moira Thompson and Melinda Jones voting against.
The budget included a 25 per cent increase on all rates, a 19 per cent increase on water and wastewater levies, and the council will no longer offer a discount for early or on time payments.
A council produced fact sheet said homeowners who paid the minimum general rate on their main home were looking at a 22 per cent rates rise, which means an extra $31.49 a fortnight.
According to a council media release, even with an “unexpected receipt” in June of a 50 per cent advance payment from the Commonwealth Financial Assistance Grant, the council was operating at a $4.207 million deficit for the last financial year.
From the beginning of Monday’s budget meeting, people began to speak up and make comments to the councillors, asking questions about the procedure and interjecting as Mr Hotz tried to speak.
While each of the six councillors addressed the room and explained, some in great detail, the reasoning behind their vote, Mr Hotz did not directly outline his own stance, instead using his opening remarks to justify why urgent action was needed.
He said the council had not opted to phase-in the rates increases over several years, as suggested by some ratepayers.
“It is well and good to have hindsight of the past events but really we have had 17 years to phase-in increases and to reduce expenditure,” he said.
“We now have our backs to the wall and need to act in a positive manner again.
“Politics is not about the next election, it’s about the next generation.”
CEO Craig Matheson outlined major challenges the organisation was facing, including costs increases of more than 10 per cent a year, while revenue increased about 5 per cent.
“I know many don’t like to hear this, but there is no escaping the fact that there is a long history of inadequate rating decisions, which has only served to embed a worsening operating position,” Mr Matheson said.
“Put simply, enough money has not been raised to cover the cost of council operations for too many years.
“This is why there have been operating deficits for so long and this cannot continue to increase unabated or else our financial position will only continue to get worse and this will inevitably lead to the withdrawal of services, something that our community has told us they do not wish to see.”
He added that stagnant population growth and negligible rise in new rateable properties has contributed to the issue.
Reportedly, the number of rateable properties in the region grew by just 59 properties between 2015 and 2025, which was an overall growth rate of less than one per cent over 10 years.
Deputy Mayor Melinda Jones said she did not support the budget because she believed council should adopt user pay services, which reportedly would have increased costs even more.
She said she believed the best option would be for users to cover 100 per cent of the costs for the services and levies listed on their rates notices, which included sewerage, water access, kerbside waste collection, and local disaster management.
This would reportedly have increased costs between 50 and 500 per cent.
Ms Vaughan also spoke against the motion and said such a significant increase was “unjust and ill timed” and she was worried about the impact it would have on those already living below the poverty line.
She said the North Burnett was already one of Queensland’s most socio-economically disadvantaged regions and the proposed rate increase risked “pushing more residents into crisis”.
Reportedly, the median weekly personal income is $599, well below the state average of $813, and the region faces higher unemployment, lower educational attainment and a growing reliance on government support pensions.
Ms McGilvery said there was no “quick fix” to the problems the region was facing, and that the council had continuously questioned ways to reduce spending and increase efficiencies in the past eight months.
“Nobody ever wants to be the bad guy,” she said.
Mr Dingle said while services may not increase, the significant rate rise would mean there would be no or little reduction in current services the community has told the council are important to them.
Ms Jones read out a barrage of negative comments from residents, including some calling the proposal “ridiculous”, alleging financial mismanagement, calling the council “a joke”, and saying “it’s time for a vote of no confidence in their councillors”.
Ms Payne said she was “disappointed by some of the behaviour” directed at council staff, particularly remarks downplaying the value of their work and referring to office employees as “pencil pushers” or calling for the culling of office staff.
A grassroots petition has also been launched, calling on the council to cap any future rate rises in line with the Consumer Price Index.
The Change.org petition was created by Mundubbera resident, Rachel Cumner, who called for the cap amid growing concern over the financial strain on vulnerable residents already grappling with low incomes and rising living costs.
“Each rate rise has a snowball effect, passing excessive costs onto those who simply cannot afford it, thereby deepening the financial hardship faced by many families living paycheck to paycheck,” she wrote.
“It’s essential that we find a solution that does not threaten the stability of our community.”
Commentary on the petition said people felt the rate increase was going to make life tough for many residents and some said they were “terrified” they could lose their homes over council fees.
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