North Burnett council reveals $22m financial shortfall for 2024

The embattled North Burnett council has blamed unprecedented inflation and funding delays for a fifth straight year of massive operating losses, while several of its senior staff are paid more than $200,000 a year, and one up to $400,000 year.

The North Burnett Regional Council (Mayor Les Hotz and CEO Craig Matheson inset) says “unprecedented” inflation and delays in federal government financial support are key drivers behind a staggering $22.3 million operating loss in the last financial year.

The North Burnett Regional Council says “unprecedented” inflation and delays in federal government financial support are key drivers in its staggering $22.3 million operating loss last financial year.

The council’s just-released 2023-2024 annual report reveals it generated only $34.3 million in revenue across the financial year, compared to a cost of $57.5 million to keep running.

The $34.3 million revenue was more than $13 million less than it raised in the 2022-23 financial year.

It is at least the fifth operating loss in a row for the council, which has been under scrutiny over its continued financial struggles amid concerns it will run out of money in 2025.

In its report, the council says the drop was caused by the timing of the federal government’s Financial Assistance Grant payments, as well as inflation.

The North Burnett Regional Council (Mayor Les Hotz and CEO Craig Matheson inset) says “unprecedented” inflation and delays in federal government financial support were key drivers behind a staggering $22.3 million operating loss in the last financial year.

It says grant revenue in 2023-24 accounted for only 10 per cent of the revenue raised, compared to 40 per cent (about $10 million) the previous year.

The new payment was not received until three days into the 2024-2025 financial year.

Running the council increased by 6.6 per cent between the two years, from $53.9 million in 2022-23 to $57.5 million in 2023-24.

The report’s figures show the operating cost of the council jumped 30 per cent in the past five years, having only cost $44.1 million to run in the 2019-2020 financial year.

This was in contrast to a shrinking rates revenue stream with a continually shrinking population across the region in the past five years, except a small jump in 2023-24 due to “wider” demands across the state.

The North Burnett council’s newly released 2023-2024 annual report reveals the organisation generated only $34.3 million in revenue across the financial year, compared to a cost of $57.5 million to keep the council running.

Staff salaries accounted for about 30 per cent of the council’s operational costs.

Senior bureaucrats were paid a total of $863,807.44 in remuneration across the financial year, the report says.

This included salary packages of between $300,000-$399,000 for one senior staff member, and $200,000-$299,000 for two others.

Councillors’ remuneration (not including superannuation) across the financial year totalled $467,407.

Mayor Les Hotz’s salary was the highest at $114,959 before super.

Councillors were paid about $57,000 each across the 12 months.

The North Burnett council operating loss was reported amid an ongoing decline in the region’s population, excepting a small jump in 2023-24 due to “wider” demands across the state.

The only conduct issue identified within the report involved Sue Payne in Division 3, who was alleged to have used an “inappropriate choice of vocabulary” in a discussion with another councillor.

The report says the matter was resolved by way of an apology letter following a recommendation by the Office of the Independent Assessor.

Staff wages and remuneration cost the council $16.5 million in 2023-24, up from $15.4 million the previous financial year.

The council employed 186 workers in the year, 14 more than in 2023-24.