Rockhampton Regional Council budget 2022/2023: Rates increase by 5.92 per cent

Rockhampton Regional Council handed down its 2022/2023 budget on Tuesday, but not everyone was happy with it. See what projects are being funded, what has missed out and all the details on the rates rise.

This year’s Rockhampton Regional Council budget is focused on investing in water and sewerage infrastructure that will set the region up for growth in years to come.

The 2022/23 budget, which was handed down on Tuesday July 19, comes with a 5.92 per cent rate rise.

Mayor Tony Williams opened Tuesday’s special council meeting with a speech.

“Councillors, last year we laid the foundations for a budget which aimed to build a bigger and better Rockhampton region,” he said.

“Today we build on those foundations and deliver a budget for the future of our region and our ratepayers.

“If we want that future to be as bright as we know it can be, we must take steps now.

“We have to invest in once-in-a-generation infrastructure today, to look after the Rockhampton region of tomorrow.”

The 2022/2023 budget has a $186.6 million capital program.

The projects include:

- the $75 million North Rockhampton Sewage Treatment Plant augmentation, which will eventually cater for another 25,000 people to live in the region;

- the next stage of the $52.8 million Glenmore Water Treatment Plant Upgrade, to “ensure a safe and reliable supply into the future”;

- And the commencement of the $120 million Gracemere and South Rockhampton Sewage Treatment Plant project along with the $48.5 million Mount Morgan water security pipeline.

“All of these are once-in-a-generation projects and once they are completed in the years to come, we will have invested $300 million in water and sewerage infrastructure,” Mr Williams said.

“If we don’t invest in this infrastructure now, we won’t be able to supply water and sewer to future residents or even maintain our current services levels, as these plants are decades old and nearing end of life.

“If we don’t do this work now, future generations will bear the consequences.”

Rockhampton Regional Council’s budget meeting on Tuesday July 19, 2022.

COUNCILLOR OBJECTS

Councillor Shane Latcham, who was elected in 2020, was the only councillor to record a vote against adopting the 2022/23 budget.

Mr Latcham believed the budget didn’t include enough community assets in North Rockhampton.

“I believe that the North Rockhampton community deserves fair and equitable distribution of community assets such as more bike paths, more walking paths, better playgrounds and more green avenues,” he said.

“This year’s budget, there is a definite gap in projects, the community assets in the area, and it seems to be a forgotten area… as much as it is half of our region’s whole population.”

Mr Latcham said he would have liked to see money towards more footpaths, as was master planned when he was first elected.

“Last year was only 1000 metres and this year and next year, there is nothing allocated in the budget for it,” he said.

“I would have liked to have seen the four years fully budgeted and costed for.”

Mr Latcham agreed with the main projects in the budget, but said some money could have been spent on other projects.

“I support all of the major infrastructure projects going forward, we do need waste, water and sewerage - those projects are at end of life,” he said.

“When it came to the remainder of money from community assets, that was my point…It’s missing central community infrastructure… in North Rockhampton.

“I give credit to the mayor for his leadership in this…I think he’s done a great job, I’m very supportive of the mayor but when it comes to this budget, it’s the fair and equitable distribution of community assets that I have concerns on behalf of the North Rockhampton community.”

Council had been meeting almost every week since February, with some meetings going for hours, as they discussed the 2022/2023 budget.

“We always have robust discussions and all of the councillors advocate for their area as well and what’s best for the region,” he said.

“We have had a very difficult and challenging budget and I hope the community appreciates how difficult it has been for us.”

RATES RISE

The average ratepayer will see a rate rise of around $216.18 per year or $4.15 per week.

It is the second highest rate increase since the deamalgamation of the council in 2012.

The highest was in the 2013/2014 budget, when rates were increased by an average eight per cent.

Last year’s rate increase was 3.35 per cent.

The 2022/2023 council budget report states rates and charges make up 74 per cent of council’s total operating income.

“As with household budgets, council is also faced with rising costs in insurance, fuel, electricity, material costs and supplies and as a result, council have been required to make some tough decisions around its budget,” the budget report states.

“A rate rise is unavoidable in these difficult times and council has made every effort to minimise the impacts on ratepayers with the average ratepayers in Rockhampton subject to a rate increase of 5.92 per cent.

“The percentage increase to total rates paid will vary from property to property, particularly for non-residential properties, depending on the proportion of each of the charges and the changes to the valuations of individual properties.”

Property valuations have increased in the region by 10.5 per cent overall and rural properties have increased by more than 59 per cent.

“These valuation increases are the main drivers of rate rises and council has endeavoured to minimise rates in the dollar increases over most rate categories,” the budget report said.

Mayor Williams said it was one of the most difficult budgets to hand down and they were originally looking at eight and nine per cent rate increases.

“A huge amount of work has gone into balancing the impact to ratepayers, maintaining service levels, finding savings and setting ourselves up to meet future financial shocks,” he said.

Each year a report is compiled comparing rates charges by suburb from councils across Queensland.

The latest report was completed in November 2021 and used rates and charges from the 2021/2022 year.

Airlie Beach was at the top of the list for the state, from the Whitsunday Regional Council, with a net average rates and charges per annum of $5,029.

Yeppoon came in fourth with $4,366 rates per annum and Emerald came in fifth with $4,243.

The suburb of Gracemere came 56th with an average rate of $3,310 and Rockhampton was 61st with $3,281.

“Still even with this rates increase, we aren’t one of the highest councils around,” Mr Williams said.

“We work very hard to be able to manage that.”

BUDGET DIFFICULTIES

This will be the third consecutive year that Rockhampton Regional Council adopts a deficit budget.

The budget report cites that the carting of water to Mount Morgan has cost council more than $5 million per year.

The “significant reduction” in Financial Assistance Grants, forecast to be reduced by $6.7 million within three years, has also been a major factor.

Rockhampton Regional Council is one of few councils in Australia that actually owns and operates its local airport.

While passenger numbers have increased at the Rockhampton Airport again, the levels of pre-pandemic activity are not expected to return until 2023/2024, and this has created another loss for council.

“These resulting pressures have required council to closely review its operation and identify savings and efficiencies which do no impact on the existing level of services provided,” the budget report states.

“These are certainly challenging economic times and as a result, the focus of council’s 2022/2023 budget is on delivering important infrastructure projects which will support the region long term, while trying to balance the impacts on the community to fund the council’s operations and capital works.”

The budget report includes a list of savings and efficiencies council has implemented in the hopes to return to a surplus position in 2023/2024.

Rockhampton Regional Council 2022/2023 Budget savings:

Reduction in consultancies: $250,000

Reduction in civil operation costs: $1.8 million

Forecast savings in Regional Services: $400,000

Fees and charges income: $330,000

Reduction in community grants: $100,000

Positions savings: $1,035,000

Closure of SmartHub: $493,500

Other savings: $70,000

MISSED PROJECTS

Speaking at the council table during Tuesday’s meeting, many councillors said they had to compromise many of their own “passion projects” because of the need to allocate money for the water and sewerage projects.

“There are projects and things we just won’t see happen and they are the ‘nice to haves’, this is a budget about the ‘needs to have’, that’s what we are looking at, the water and sewerage capital projects,” Mr Williams said.

“That’s positioning our region for the future.”

A project that didn’t see any money in this budget was a new sporting precinct, as so many of the city’s sporting fields are in flood areas.

“There are many projects… I stood in front of the community and ran for mayor…we were looking at a sporting precinct that I really had passions about,” Mr Williams said.

“Unfortunately we just can’t deliver those types of projects now.

“There are some projects we have had to put lines through.”

KEEP PROJECTS

Projects that did get money allocated in year one (2022/2023) of the budget include:

Major infrastructure projects:

Alliance Airlines maintenance facility: $14 million

Airport parking equipment replacement: $800,000

Gracemere and South Rockhampton Sewerage Treatment Augmentation: $5.205 million

Glenmore Water Treatment Plant Solar: $2.2 million

Glenmore Water Treatment Plant electrical: $16.670 million

North Rockhampton Sewerage Treatment Plant: $27 million

Botanic Gardens and Zoo redevelopment: $5.207 million

South Rockhampton Flood Levee: $500,000 for land resumptions and $25,000 in design development

Mount Morgan Pool replacement: $5.25 million

Mount Morgan water security: $22 million

Lakes Creek landfill: $5.154 million

Gracemere Waste Transfer Station design and construct: $3.116 million

Capital budget projects:

Airport upgrades (includes car park lighting, stormwater infrastructure, bitumen surfacing, air conditioning unit replacements, terminal lighting upgrades): $1.873,100

Art Gallery (includes artwork commissioning and acquisition): $66,500

Mount Morgan Cemetery extension: $246,000

South Rockhampton Cemetery: $536,000

McLeod Park ( Dean Street) lighting: $250,000

The Flats, Southsea Islander Hut: $120,000

Energy study to determine next solar sites and electric vehicle charging sites: $150,000

Customs House reroof: $220,000

Walter Reid reroof: $270,000

Heritage Village improvements: $300,000

Kershaw Gardens footpaths renewals: $150,000

Botanic Gardens internal pathway renewal and car park: $530,000

Zoo enclosure renewals: $532,171

Casuarina Boat Ramp: $272, 708

Inkerman Boat Ramp: $600,000

Scrubby Creek Bridge, Old Capricorn Highway: $1.3 million

RATES DISCOUNTS

Rates notices are issued twice a year, for the periods of July to December and January to June.

A discount of 10 per cent is applicable if rates are paid by the due date on the notice.

Pensioners are also eligible for a rebate of up to $260 per annum.

Sporting clubs, non-profit and charitable community groups will be able to apply for concessions of up to 100 per cent.

“We know that rates form a large amount of sports and community groups’ operating costs which is why we want to help keep these costs down as best we can,” Mr Williams said.

“For the rest of our ratepayers, we have kept the 10% discount for those who pay their rates by the due date to help lessen the financial burden.”

Rockhampton Regional Council 2022/2023 Budget savings:

• Reduction in consultancies: $250,000

• Reduction in civil operation costs: $1.8 million

• Forecast savings in Regional Services: $400,000

• Fees and charges income: $330,000

• Reduction in community grants: $100,000

• Positions savings: $1,035,000

• Closure of SmartHub: $493, 500

• Other savings: $70,000

Rockhampton Regional Council 2022/2023 budget key points:

• Typical Rockhampton residential ratepayer will experience a rate rise of 5.92 per cent, $216.18 per year or $4.15 per week

• Council has an operating deficit of $3.6 million

• Total capital expenditure of $186.6 million with $72.4 million funded by Capital Grants and Income

Rockhampton Regional Council previous budget rates increases:

2012/2013: 4 per cent

2013/2014: 8 per cent

2014/2015: 3.6 per cent

2015/2016: 1.9 per cent

2016/2017: 3.1 per cent

2017/2018: 1.9 per cent

2018/2019: 3.9 per cent

2019/2020: 2.8 per cent

2020/2021: 1.64 per cent

2021/2022: 3.35 per cent

CQ councils rate rise for 2022/2023:

• Banana Shire Council: Between 3 and 4 per cent
• Central Highlands Regional Council: 3 per cent

Livingstone Shire Council and Gladstone Regional Council are still to hand down their budgets.