Draft budget could see ratepayers divided across Southern Downs

Southern Downs Regional Council has revealed the winners and losers in the proposed 2024-25 draft budget, which could leave a bad taste in the mouth for some residents. DETAILS.

The nailbiting wait is now over for Southern Downs residents as council opens its draft budget up for community consultation.

Mixed feelings about the proposed 2024-25 budget were raised during a special council meeting on Wednesday.

Incumbent mayor Melissa Hamilton said despite a short window for the new council to contribute to the upcoming budget, their influence has been positive.

“There has been a lot of robust debate around this table during budget sessions and I am confident there has been good representation of different parts of our community in that process,” Ms Hamilton said.

Speaking with Warwick Daily News on Thursday, Ms Hamilton said the current council will continue to develop their strategic plan over the coming financial year, with more input to be reflected in the 2025 budget.

In addressing the $914,000 capital surplus, Ms Hamilton said this was necessary to help reduce borrowing costs towards major water infrastructure projects.

“A council budget typically aims to have an operational surplus, this is so we can apply for funding in areas where we can’t spare it,” she said.

While the major water and wastewater projects likely won’t be completed by 2025, Ms Hamilton said the smart water metre program is to be completed across the region within the coming financial year.

Southern Downs mayor Melissa Hamilton introduced the 2024-25 draft budget during a special council meeting on Wednesday.

An AEC rating assessment took place at the end of 2023 to review council’s current rating policies, revealing rural and resident ratepayers in the region were paying much higher rates than neighbouring regions.

Implementing the recommendations from the AEC assessment is set to provide residents with a more fair and equitable rating system.

The 12-year gap from the previous AEC rating assessment completed in 2012 was likely due to there not having been a two-term council in this time, Ms Hamilton said.

A major focus of the draft budget will be in working to improve water, wastewater and waste infrastructure, with council to advocate to state and federal governments for funding to help reduce the financial impact of the critical services.

RATES REPRIEVE IN SIGHT

Ms Hamilton revealed during the meeting that Southern Downs residents could see as little as a 2.5 per cent increase in general rates, coming in well below council’s cost index of 3.9 per cent.

It is predicted 84 per cent of ratepayers with residential land value of less than $175,000 will see no change, with almost half of those who have a value of over $175,000 to see a decrease or no change.

Ms Hamilton said the change in rates was predicted to only affect around a quarter of households, with rate capping proposed to level out the changes in coming years.

“While we’ve attempted to minimise the increase in rates and charges there are increases proposed in water, wastewater and waste,” she said.

Agricultural and horticultural landowners will also see a percentage receive increases as well as those whose rates will stay the same or decrease.

A decision by previous council in 2023 to adopt a price path exercise has seen an increase in the cost towards these critical services, in a move to bring them up to full cost recovery over the next two years.

KEY CHANGES TO RATES & UTILITIES

• General rates to increase by 2.5 per cent

• Water charges to increase by 9.25 per cent

• Wastewater charges to increase by 3.5 per cent

• Waste collection charges to increase by 3.50 per cent

• Waste management levy to increase by $60

The draft budget’s capital program with a current cost of $47.5m over the next financial year is set to deliver an operational net surplus of $914,000.

Councillor Cynthia McDonald called the surplus “unreasonable” given the current national cost of living crisis.

“I cannot support an operational surplus budget of $914,000 during times of such financial stress,” Mrs McDonald said.

Mrs McDonald said due consideration should be given to ensuring future capital and project costs don’t continue rising above the CPI.

Councillor Joel Richters said the shift in financial burden to commercial and industrial sectors would impact local businesses.

Mr Richters said while he generally supported the capital budget, there were missed opportunities by council in investing in revenue generating initiatives.

MAJOR WATER & WASTEWATER INFRASTRUCTURE PROJECTS

Stanthorpe’s Water Treatment Plant is set to see a $30m upgrade as part of the 2024-25 draft budget infrastructure works.

• $30m upgrade to Stanthorpe Water Treatment Plant

• $6M landfill site in Warwick

While it was agreed at the roundtable the incumbent council were in support of opening the draft budget to the community for their feedback and to determine its endorsement.

The community consultation will run for two weeks from 8am June 13 to 5pm June 28, with council to review submissions at an information session on July 10.

The 2024-25 draft budget and community feedback form can be found on the Southern Downs Regional Council website.