Ipswich Council Budget 2024-25: rates to rise, no cost of living ease
Ipswich ratepayers will take a bigger hit to their back pockets than Brisbane residents after the council’s new budget revealed a rates increase higher than the national average. SEE THE DETAILS
Ipswich
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Ratepayers in Ipswich will take a bigger hit to their back pockets than their Brisbane counterparts after Council’s new budget revealed a rates increase almost two per cent higher than the national average.
The latest Ipswich City Council budget does not deliver an ease to cost of living pressures for residents despite the overall budget figure for the city falling by more than $30 million.
Rates set to rise by 5.45 per cent, considerably higher than CPI at 4 per cent and the former March 3.4 per cent in the Brisbane City Council.
Finance and governance Committee Chairperson Councillor Paul Tully said they had to look at what the community asked for as the money belongs to the ratepayer and not the council.
“We need to balance that and make a decision based on all the requests that we get,” he said.
“I’ve had numerous requests all the time in relation to parks, in relation to roads and drainage and we tried to make a decision which is fair for the majority of ratepayers”.
Councillor Tully highlighted the rate increase would mean an extra $2.58 per week out of the pocket of ratepayers and reflected the rising cost of essential service delivery to council.
“Just as household costs are up, it is costing council more to deliver essential services our community expects to fuel and construct necessary community infrastructure to cater for our growing city,” Cr Tully said.
“The average increase to fees and charges is based of a forecast Council Cost Index (CCI), which tracks how much more it is costing councils to deliver services and shows costs for councils have continued to rise faster than the Consumer Price Index (CPI).
“While council understands any rise directly impacts household budgets, these rises are necessary to ensure service delivery keeps pace with community demand.”
In her opening address, which she made via video link, Ipswich Mayor Teresa Harding said the rate increase would benefit the city.
“While a rate rise of 5.45 per cent is higher than the current rate of CPI at 3.6 per cent, this gap between those figures equates to an extra 55c per week on your rates bill, but will deliver an addition $4 million to our city,” she said.
“It is this small difference that has allowed our Council to continue to deliver the services, programs and major projects that our residents expect – while maintaining a modest budget.
“The temptation always exists for councils to adopt lower and lower rate rises, we have seen in other councils where this has resulted in cuts to staff, cuts to major projects and cuts in service delivery.
“This is something our council simply cannot sustain”.
Overall, the size of the budget is dropping from $692.6 million last year to $663 million this year, with capital works dropping by more than $60 million.
Cr Tully, who chaired the meeting in the absence of Mayor Harding who tested positive for Covid, and the Deputy Mayor who was on leave, said the decrease was due to reduction in loan amounts owing and carry-over projects.
“The major element of that is two things in relation to loan borrowings, which are being repaid, and greater internal efficiencies in council,” he said.
“Our total loan amount outstanding will drop from $403 million to $399 million over that period of time.
“We have also achieved greater internal efficiencies as well, so you’re going to see a lot of work in the community.”
Mayor Teresa Harding, along with her colleagues, said the budget was about financial sustainability, sustainable growth and the long-term future of the city.
She said the latest budget prioritised investment needed in its suburbs.
“We have recognised the unique cost pressures that Ipswich faces when compared with other councils, and this budget takes steps accordingly,” she said.
“This budget ensures renters are not adversely impacted, by keeping the same rates and charges increase for non-owner-occupied properties as for owner occupied.
“Ipswich has the highest rate of growth of any southeast council in the coming decades, with the current population expected to double to 533,000 by 2046.
“We simply cannot stop our focus on managing this growth sustainably, and this budget is about ensuring our suburbs have quality parks, roads, pools, libraries and community facilities.
“Over the past three years, we have faced a construction cost index increase of a staggering 27 per cent and we have worked hard to reduce the impact on ratepayers wherever possible.
“This budget will allow us to deliver and maintain the suburban infrastructure our growing community needs, while minimising the impact on ratepayers.”
Pensioners in the city have been handed a lifeline to ease of cost of living pressure with an offset of 5.45 per cent, which will be passed on automatically to existing concession recipients.
“Pensioners on a full pension can claim an increased concession of up to $258 per year and $127 for the part pension,” Mayor Harding said.
Cr Tully called for the state government cap to be lifted, saying the cap on infrastructure charges is very restrictive.
“The cap is very restrictive because councils can only charge developers the amount fixed by the state government and that’s a real burden on existing ratepayers,” he said.
“Are there any reasons why the ratepayers of Goodna or Rosewood should be paying or subsidising development in our city? We say no.
“We should have the ability to set the charges appropriately, in accordance with general principles, rather than the figure nominated by the state government.
“It’s not enough for any council, particularly in southeast Queensland to provide the infrastructure that’s needed based on the increasing size of our communities.
“Councils need clear guidelines but we should be able to set our own figures because we know what it’s costing us almost right down to the dollar for every new home that’s developed in Ipswich.”
IPSWICH CITY COUNCIL 2024/24 BUDGET BREAKDOWN
OVERALL
- Total budget: $663 million, down from $692.6 million last financial year
- Overall increase for an average property rates bill: $2.58 per week, 5.45 per cent increase from last year’s rates
- Same percentage increase for owner occupied properties and non-owner occupied
- Waste Utility Charge: $464 annually
- Enviroplan Levy: $58 annually
- Forecast debt at June 2025: $399 million
- New loan borrowings in 2024-25: $42 million
- $203.6 million capital works program 2024-25, and $528 million over the next three years
- $28 million for ongoing Springfield Parkway and Springfield-Greenbank Arterial upgrades
- $89 million for asset rehabilitation and flood recover, including $11 million for the ongoing Voluntary Home Buy-Back Program
- $22 million for Nicholas Street Precinct
- $62.4 million maintaining, upgrading and expanding our road network this financial year.
- $5 million for resource recovery
- $9.4 million for community and sports facilities
- Increased hourly paid parking rate of $1.60, up from $1.40
- An additional domestic bin collection out of normal service will cost $24.80 per year, up $1
- Introductory dog registration fees will remain at a discounted rate of $20
- registration of a desexed dog will be $46 ($31 for pensioners), up $2
- Conclusion of the 2022 flood recovery program this financial year
DIVISION 1
- $4 million for the Mary and William Street intersection upgrade in Blackstone
- $3.5 million for the replacement of the Hiddenvale Road and Tome Kerle Bridge, Calvert
- $1.8 million toward the Redbank Plains Road upgrade – stage 3 to a four lane urban road, extending from Keidges Road to Kruger Parade
- $500,000 toward the planning of a new sports facility, sports field, clubhouse and carpark at Redbank Plains Recreation Reserve
- $492,000 for establishment of an Islamic burial section at Stone Quarry Cemetery, Jeebropilly
- $310,000 for the planning of the upgrade of School Road, Redbank Plains
DIVISION 2
- $28 million for the Springfield Parkway and Springfield-Greenbank Arterial duplication projects
- $1.8 million for kerb and channel rehabilitation at Emery Street, Carole Park
- $1.8 million toward council’s contribution for 22B sports fields at Springfield Central
- $1.5 million for pavement reconstruction at Jasmine Street, Bellbird Park
- $1.35 million to replace lighting at Bob Gibbs Park Sports Field, Springfield
DIVISION 3
- $22 million for the Nicholas Street Precinct
- $4 million for East Ipswich Catchment Drainage Rehabilitation – undertake stormwater drainage rehabilitation works in the East Ipswich Catchment – Stage 1
- $3.7 million for major upgrade of the Ipswich Nature Centre biosecurity area over three years
- $1.3 million for road rehabilitation at Casey Street, Leichhardt
- $600,000 for Queens Park tennis court lighting replacement
DIVISION 4
- $3.2 million for the second stage of Tallegalla Cemetery expansion
- $1.95 million for road culvert rehabilitation at Tallegalla Road, Tallegalla
- $1.5 million for Adelong Ave road rehabilitation, Thagoona
- $1 million for the upgrade of the Wulkuraka Connection and Keswick Road, Karrabin
- $1 million for upgrades to sporing field lighting at Ivor Marsden Memorial Sports Centre
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