Mackay council releases 2023-24 budget with 3.8 per cent rates increase
The 2023-24 budget raising rates has been touted as the ‘best’ for the region but there are claims project spending is about ‘photo opportunities’.
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Mackay council will raise rates by 3.8 per cent for the average ratepayer in a $420m budget that keeps the yearly increase below inflation.
The rate rise means ratepayers will fork out about $3164 for the 12 months, a $116 increase on the $3048 levied in 2022-23.
In a special meeting attended by Queensland Treasurer Cameron Dick, councillors traded concerns about the long term financial health of Mackay Regional Council, but one called the budget the “best one I’ve seen” in eight years.
“In the past five years, council’s budgets have focused on keeping rate rises at or below CPI (consumer price index),” Mackay Mayor Greg Williamson said.
“Despite rising costs, today’s budget maintains that approach,” he said.
Inflation is currently running at more than 7 per cent.
Rates concessions for pensioners and not-for-profit organisations remain in effect.
It is still unknown whether the financial year will end with a deficit or surplus, but operations director Angela Hays said it would be a modest swing either way.
When considering the long term financial forecast, councillor Marty Bella confirmed his support for the budget but raised concerns about new signature projects.
“I’ve many times raised the issue of accepting grant funding with no consideration for the immediate and long term financial burden we’re saddled with,” Cr Bella said.
“It’s the proverbial honey trap.
“For the chance to cut a ribbon or have a photo opportunity, we’re saddled with continuing increasing maintenance and appreciation debt.”
On the other hand, councillor Justin Englert responded that 2023-2024 was the “best budget I’ve seen” in his eight years of serving on council.
“I’m the most confident I’ve been in a long time that we’re doing the best that we possibly can,” he said.
Cr Englert also emphasised that successive budgets had kept rate rises under the CPI.
Mr Williamson said the 2023-24 budget had been designed to maintain the region’s long-term financial stability, including growth encouraged by signature projects.
“There’s not anything to do with photo opportunities, that’s just a trite message (with) an unfortunate political slant,” Mr Williamson said
“This is about growing our community and giving the ratepayers of Mackay an opportunity to have the things that make it liveable.
“Our investment is about community, growth, and making sure that we can spread the load, not about photo opportunities.
“Like all businesses, we continue to face the same challenge including cost pressures, supply chain issues and labour shortages.
“To mitigate these risks, we will be considering alternative delivery methods, bundling capital projects and investing in training programs.”
The council holds $3.8bn in infrastructure assets on its books and the budget allocates $128m to these assets.
Some $58m will go to renewing existing assets, $20m on upgrades and $50m on new assets.
“One of the largest capital outlays for the coming budget will be $21.5m in drainage works, including the South Mackay levee, Pioneer levee (Rivers Edge to Heaths Rd) and Sarina northern trunk drainage upgrade,” Mr Williamson said.
“These vital works will ensure we are prepared for extreme weather events,” he said.
Other big-ticket spends include $4.5m to rehabilitate and replace ageing timber bridges in the region and $8.1m for the next phase of the waterfront redevelopment project.
“The next stage of this project will involve installing a $3.05m floating pontoon at the end of Brisbane St, near Bluewater Quay, which will enable centralised access to the river for commercial and non-motorised watercraft,” Mr Williamson said.
The council has also allocated $10.3m to complete Stage 1A of the Northern Beaches Community Hub.
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