Gympie Regional Council reveals $12 million loss in 2024

In an unexpected development, a budget surplus anticipated by the Gympie Regional Council has cratered into a massive operating loss.

A forecast budget surplus has cratered into the red for Gympie Regional Council (Mayor Glen Hartwig and CEO Robert Jennings CEO pictured) with a new report revealing continually rising costs, and that a councillor was evicted from a meeting.

A forecast $750,000 budget surplus for 2024 has instead cratered into an almost $12 million operating loss for Gympie Regional Council, the organisation has revealed.

The organisation’s latest annual report, adopted and released by councillors at Wednesday’s meeting, revealed the cost of running the council in 2023-24 outstripped the amount of revenue it raised by $11.5 million.

It is the third operating loss - and by far the biggest - in as many years, following a $1.49 million loss in 2022 and a $3.07 million loss in 2023.

The cost of running the council from 2022 to 2024 has increased from $114.09 million to $135.6 million.

The council raised $93.1 million of its operating revenue through rates and charges.

This was up from $83.5 million in 2022.

A forecast budget surplus has cratered into the red for Gympie Regional Council (Mayor Glen Hartwig and CEO Robert Jennings CEO pictured) with a new report revealing continually rising costs, and that a councillor was evicted from a meeting.

Mayor Glen Hartwig said in the report the “significant” shortfall was caused by increased depreciation expenses, accounting and legislative changes, and delays in federal government grant funding.

The grant would have added $6.3 million to the council’s coffers in 2024, Mr Hartwig said.

The depreciation increase was caused by $60 million in flood recovery projects across the region, he said.

Cost-of-living pressures were biting too.

Mr Hartwig said prices had experienced “significant” increases, and “the price of concrete has risen by as much as $60 per cubic metre”.

The cost of Gympie’s elected representatives was $957,953 in remuneration across the financial year.

Mr Hartwig’s total paypacket, including superannuation for the financial year was $158,249, while the divisional councillors were paid $84,068.

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Gympie Regional Councl’s latest annual report, adopted and released by councillors at Wednesday’s meeting, revealed the cost of running the council in 2023-24 outstripped  the amount of revenue it raised by $11.5 million.It is the third operating loss in as many years, following a $1.49 million loss in 2022 and a $3.07 million loss in 2023.

Another $112,68 was paid in reimbursements for vehicles and phones.

Councillor salaries are set by an independent state government body.

The total amount paid to senior staff was $1.14 million.

This included two senior staff paid between $300,000 and $399,000, and two paid $200,000 to $299,000.

Jess Milne was the sole councillor reprimanded for conduct during the year.

The report says a complaint had been made about Ms Milne’s behaviour towards a meeting chairperson, saying it was in breach of the councillor’s code of conduct.

The chairperson asked for an apology, but as Ms Milne “did not comply with this request” she was instead reprimanded and evicted from the building for the rest of the meeting.

Employee costs for the council totaled $49.66 million in 20224, up from $38.69 million in 2022.

Full time staff numbers at the council increased from 525 in 2023 to 554 in 2024, with 42 more administration staff (from 323 to 365) offset by a drop of 13 among outdoor workers (from 193 to 180).

The report says $231,000 in termination benefits was paid out to key management staff, which encompasses the mayor, councillors, the chief executive officer, and executive management, in 2024.