Southern Downs ‘no frills’ council budget revealed

Southern Downs Regional Council has handed down its ‘no-frills’ budget for the next financial year. From rates rises to big-ticket projects and more, we’ve broken down what the spending means for you.

BUDGET TIME: Southern Downs Mayor Vic Pennisi declared the council’s 2021-22 budget a “no frills” financial plan designed to bring the region out of the “perfect financial storm”. Picture: file

The region’s $30 million “ageing infrastructure cliff” and ongoing recovery from years of drought, floods, and COVID were at the forefront of the 2021-22 budget handed down by Southern Downs Regional Council this week.

Mayor Vic Pennisi labelled the budget a ‘no frills’ plan at the ordinary council meeting on Wednesday, voicing hopes a renewed focus on core areas such as waste and water would enable long-term financial and infrastructure security.

“SDRC finds itself in the perfect financial storm post-COVID, when struggling resources were pushed to the limit and the recent revaluation increase presented further complexities and challenges in this budget,” Cr Pennisi said.

“Focusing on core business is critical and vital to put downward pressure on rates during these extraordinary times.

“We are currently collaborating with our neighbours exploring common inhibitors and finding ways to combine resources to better manage what we find difficult to do alone.”

Here’s a full breakdown of the SDRC 2021-22 financial year budget and what it means for ratepayers.

Rates changes

General rates will go up by an average of 1.3 per cent for Southern Downs residents this year, but the increase likely won’t be felt equally across the region.

A large disparity in new land valuations issued by the Valuer General earlier this year, which particularly affected rural and agricultural properties, will mean some ratepayers will pay well above the 1.3 per cent while others fork out less.

In the wake of up to a $4 million loss in the 2020-21 waste budget, landfill access has been removed from the general rates bill and residents will instead pay a flat-rate fee of $30 annually.

Water access charges will remain the same for residents and commercial users, but consumption costs will rise under a new two-tier pricing model.

Residents will be charged $2.40 per meter, per kl until they reach 150kL in six months, at which point the rate would rise to $3.00.

Households in Dalveen, Pratten, and Leyburn will be charged $1.92 and $2.40 respectively.

Rates notices will again be issued biannually and the 7.5 per cent discount will apply to amounts paid within the allotted period.

Big-ticket projects

SDRC has proposed to invest a whopping $53 million in 109 capital works projects across the region, beating the allocation from the previous financial year by more than $10 million.

More than half of this investment will be dedicated to road works, construction, and water or sewage projects in an attempt to begin chipping away at the council’s $30 million infrastructure target over the next three to five years.

About $5.5 million in works will target repairs from the 2020 and 2021 flood events, while another several million dollars was spread across agricultural and arts developments.

These were some of the biggest investments highlighted in the 2021-22 budget —

$3.5 million – Landfill cells being capped in Warwick and Stanthorpe

$2.4 million – Relining and replacement of sewer lines and mains in Warwick and Stanthorpe

$1.5 million – Upgrades to Stanthorpe Art Gallery

$1.4 million – Road works under the Black Spot Program 2021/22

$1.2 million – Connolly Dam remediation works

$1 million – Warwick Saleyards redevelopment

$993,000 – Smart Water Meter systems

$985,000 – Homestead Road Bridge construction

Council debt

SDRC will continue to carry the debt of councils past into this financial year, with total borrowings reported at $18,150,489 as of May 31.

General borrowings of about $3 million in the 2010-11 and 2011-12 financial years make up the bulk of the debt, along with the $3.75 million loaned in 2013-14 for the Allora water main.

Cr Pennisi said this financial year’s budget would work to repay about $1.7 million in loans, with the council pledging to not borrow any funds before June 30, 2022.

“Any borrowing that takes place in the future while this council is in place, I need to stress, will be for those items that have an income attached to them like water and sewerage,” Cr Pennisi said.

The debt figure is balanced by the council’s $64.4 million in cash at bank and investments.

Community projects

The 2021-22 council budget also made several funding allocations for community-focused projects across the Southern Downs.

The Stanthorpe Netball Association will receive $240,000 in grants funding for a new clubhouse, while SDRC will devote another $48,326 to a new Warwick Christmas Tree.

A further $31,000 was listed for a new wading pool in Stanthorpe, while recreational facilities such as WIRAC and the Allora and Killarney Pools were allocated about $1 million in total.

Ratepayer submissions

Despite receiving 13 submissions from members of the community during the draft budget consultation period, SDRC declined to make any amendments to the proposed funding.

An electric vehicle charging station in Stanthorpe, works at the main entrance of the Killarney Bowls Club, and support for the Warwick Show and Rodeo Society were among those projects submitted for inclusion.

The number of ratepayer submissions was down significantly from 55 in the previous financial year.

Looking forward

A 10-year forecast was included for many capital works projects alongside the decided 2021-22 investment, with a particular focus on sewage and waste management.

A proposed $9.7 million would be invested in renewing water mains across the region the by the end of the 2031 financial year, and another $9.28 million in relining sewer mains within the same time period.

SDRC is currently proposing another $8 million would be dedicated to installing Smart Water Meters across the region.

Cr Pennisi said there was no firm decision made as to whether the funding would be obtained through government grants, bank loans, or another source, but said the emphasis would remain on putting downwards pressure on rates.

“(The 10-year forecast) is there so we can start to bring in some of those asset management plans, and we’ve opted to make sure that we’re fully aware of what’s coming in the future,” he said.