Rockhampton Mayor Tony Williams speaks of potential rate rise amid grants cuts

Rockhampton Regional Council has reached its initial draft budget as it continues to crunch the numbers following crucial grants being cut. Here’s what’s on the cards.

A rate rise could be on the cards as council continues to crunch the numbers, reaching its initial draft budget position for the 2022-23 financial year.

The budget is said to focus on minimising the impact on ratepayers and drive internal efficiencies in an a bid to save money in a “difficult economic environment”.

Since February, council has held special meetings to crunch the budget numbers after having its financial assistance grants cut, with Rockhampton Regional Council being put into the same category as places such as the Gold Coast and Brisbane.

The cuts mean $2.2 million in grant revenue has been slashed in the 2022-23 financial year, culminating in an overall loss of $6.8 million by 2024-25.

The council’s current proposals are still in the early stages but would see $3.5 million in operational savings made over the next three years.

“Our region is facing its toughest financial challenge since deamalgamation and with these challenging times, we have to make hard decisions,” Mayor Tony Williams said.

“When making these decisions, it is a delicate balancing act of trying to keep down the cost of living for our residents while ensuring our organisation is financially sustainable so we can provide the services and infrastructure our community needs and deserves both now and into the future.

“In looking at where we can make savings and increase revenue, we have adopted the approach of many small steps as opposed to large, sweeping changes.

“We believe this will get us to reaching the level of financial sustainability we need while minimising the impact on the community and organisation as much as possible.

“The hits to our Budget through Covid, the drought and cuts to our grant funding are beyond Council’s control, but it is our responsibility to manage these reductions and looking after our ratepayers has been front and centre of these decisions.”

So far reduced revenue from the airport and the cost of carting water to Mount Morgan has reached $4.86 million.

Some of the measures proposed include:

• Reducing the consultancies budget by $250,000 and instead using specialists within the workforce;
• Increase fees and charges by a total of $330,000 with small-scale increases to charges in FRW, RRWR and planning and development;
• Reduce road maintenance costs by $1.2 million through smart technology measures such as LED street lighting which reduces council’s electricity costs;
• Reduce insurance premium by $50,000 and accepting higher excess fees;
• Over budgeted employee costs of $378,500;
• Small scale solar initiatives to reduce power bills by $50,000;
• Reduce community grants funding by $100,000; and
• Additional efficiency gains of $391,500

Council said further savings were forecast if the proposal to close the popular Rockhampton CBD SmartHub proceeded, with that process still in the consultation phase and not yet finalised.

The SmartHub, which is located inside Customs House, could close as council looks to cut costs following financial assistance grants being slashed. Photo: Chris Ison

Mr Williams also said council was investigating an indicative rate rise of six per cent this year.

“We know any increase to the cost of living is hard for our community,” he said.

“But it is important that we get the balance right and if we cut too hard into the organisation to make savings, our community will be getting less services and less infrastructure and that creates worse outcomes for our region.

“I made a commitment at the start of the year that council would keep the community informed and we would be transparent in our decision making, which is what we are doing.”

The mayor said he had met with multiple cabinet ministers in the past months and also local MPs outlining the challenges ahead.

He said council would continue to advocate for the grant funding reduction to be reversed and for more government assistance.

This week council decided to present an alternative proposal to Livingstone Shire Council on the Northern Suburbs Boundary review.

The proposal is confidential so discussions can be carried out in good faith.