Coronavirus lands $180m blow on Brisbane City Council budget

Coronavirus has been blamed for a $180m blow to Brisbane City Council’s budget which was handed down this morning, but ratepayers will be spared a hip-pocket hit … for now.

Lord Mayor Adrian Schrinner says these are the most challenging economic conditions he’s faced in his time in council. File picture

THE coronavirus has punched an $180 million hole in the Brisbane City Council’s budget over 18 months but ratepayers will be given a six-months holiday from rates rises.

Handing down his second budget since taking the top job, Lord Mayor Schrinner also revealed a $300 million cost blowout in the signature Brisbane Metro project due to electrifying the project and skyrocketing labour costs.

Cr Schrinner said it was the most challenging economic conditions he had faced in 15 years but the council had scrimped enough savings to deliver a “modest” $195 million surplus.

Coronavirus lands $180m blow on Brisbane City Council budget

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“The very first promise – our most prominent promise when launching our campaign – was that we would keep the budget strong and balanced,” Cr Schrinner said of his recent re-election.

“In the almost 15 years that I’ve been a councillor, I have no doubt that this is the most challenging budget that I have seen.”

Speaking at City Hall, Cr Schrinner said the $3.1 billion 2020-21 budget would “build to rebuild Brisbane” with an $840 million infrastructure program centred on the signature Metro busway and two fast tracked green bridges.

“That is our version of stimulus, that is our stimulus to create jobs, that is our way of supporting the community,” he said.

He revealed a six-month rates freeze – the first in 35 years – until the end of the calendar year before rising 2.5 per cent on January 1.

It comes as more than 6,000 ratepayers took advantage of a nine-month rate deferral through the pandemic, costing the bottom line an expected $38.7 million.

Revenues have slumped $40 million this financial year with the Council forecasting a further $142.5 million drop in 2020-21.

The biggest plunges are expected to come from reduced infrastructure charges and developer contributions ($75.7 million), falls in general fees and charges ($34.5 million) and a fall off in rates and charges (19.9 million).

Wage freezes for council staff and the suspension of kerbside pick-up for two years would help council achieve its 17th consecutive surplus, he said.

Other big ticket spending items for the coming year, included $14.6 million to deliver new ferry terminals at Howard Smith Wharves and South Bank, and another $33.5 million on 60 new buses.

There would also be a one-off $250 rates rebate for people on Jobseeker and a 100 per cent rebate for first homeowners who buy a newly-built home.

Cr Schrinner also promised that business fees for 16 different permits, including streetside dining, would continue to be waived until the end of the calendar year.

The average ratepayer would pay $752.12 annually in 2020-21, up from $733.76 in 2019-20, but council argued these were still the lowest rates in southeast Queensland.

Council opposition leader Jared Cassidy slammed the budget as “business as usual” during the most severe economic downturn since the Great Depression.

“We got half a rates freeze, we’ve got half a rates rebate, and he’s slashing support for community groups by more than half,” Cr Cassidy said.

“What we needed was a budget that was a COVID response.”

He said the rates rebate for people on JobSeeker should be extended to those on JobKeeper.

“This is fundamentally a half measure.”

He said the LNP was more concerned about a budget surplus than looking after Brisbane.