South Burnett Regional Council fears rate rise as State Government funding slashed

The State Government has delivered a devastating blow to the region and slashed funding to the local council, which will force a budget do-over and is feared will lead to painful rate rises and tough decisions.

South Burnett Regional Council has expressed fears rates could rise and services cut back after the council’s annual funding under the Queensland Local Government Grants Commission was slashed by nearly half a million dollars.

A new formula being used by the commission to distribute Financial Assistance Grants has cut funding without consultation to 27 regional councils, including the South Burnett, Toowoomba, Bundaberg, Fraser Coast and Rockhampton, which were deemed to have a higher capacity to raise revenue.

Mayor Brett Otto said the news was a devastating blow, which would deepen the existing $3 million deficit and force the council to either increase rates or cut services to the region.

“It's going to make it very challenging for us as a council to mitigate rate rises,” Cr Otto said.

“It’s money that goes towards general operations in the council, so it pays for our parks and gardens maintenance, compliance services, the mental health support that we provide, and local disaster management.”

The funding cut will also impact the South Burnett’s 3200 km road network, with the funding representing about 10-15 per cent of the council’s roads expenditure.

The South Burnett Regional Council will likely be forced to up the estimated 1 per cent rate rise for the next financial year. Photo/Holly Cormack

In a letter dropped on the council just prior to 2021’s final general meeting on Wednesday, the QLGGC chairman said the South Burnett’s “allocation” is expected to drop by 7 per cent, or $499,000, for the 2022-23 year.

This is despite the State Government receiving 5.8 per cent more federal funding, or $532 million, to distributed among Queensland’s 77 local councils this time around.

“We will now have to re-evaluate our budget,” Cr Otto said.

“Our council has worked very hard to move this council out of deficit and into surplus, and we will now have to look at further cuts to our budget as a result of this $500,000 hit. That is the bottom line.

“We'll have to look at the services we provide across the region - the back office services, the library services, the parks and garden services. This (impact) goes directly to those key services we provide to the community.

“The outcome is highly disappointing. It's unfair, it’s inequitable and it doesn’t recognise the challenges of delivering services in a rural community that has increasing costs and that has a relatively low population.”

Cr Otto said the decision was a “punch in the guts” for the region’s ratepayers, particularly on the back of decades of drought and recent flooding, which has littered potholes throughout the road network.

Councillors voted unanimously on an amendment put forward by Cr Kirstie Schumacher to take their concerns to Brisbane. Photo/Holly Cormack.

During Wednesday’s general meeting the councillors voted unanimously on an amendment put forward by Cr Kirstie Schumacher, which will send all seven councillors to Brisbane to voice their concerns on behalf of the region to Local Government Minister, the LGAQ CEO, and chairman of the QLGGC.

“Our ratepayers are doing the heavy lifting contributing 58 per cent of our cash, so what the government contributes to are operations is already a very minor amount,” Cr Schumacher said.

“This is absolute hogwash to receive this letter, and in reference to other councils who have received this letter.

“Toowoomba Regional Council has a population of 135,000, Rockhampton has 86,000 people, Fraser Coast has 138,000 people, Bundaberg has 96,000 people.

“The South Burnett - 32,500 people. There is no way we can make up that shortfall in our budget.

“How dare they make a decision like this, it is absolutely appalling.”