SDRC reveals cost of ‘ageing infrastructure cliff’ to ratepayers
SDRC has taken the first chunk out of its whopping $30m bill to replace the region’s sewerage network, but Mayor Vic Pennisi fears the worst is yet to come, saying ‘it keeps me awake at night’.
Warwick
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Southern Downs Regional Council has taken the first chunk out of its whopping $30 million bill to target the region’s “ageing infrastructure cliff”, but the Mayor warns the worst could still be yet to come.
The council will allocate $2.54 million to sewer relining and regional sewer pump station upgrades under the 2021-24 Works 4 Queensland funding from the State Government.
After multiple sewage leaks into major waterways this year alone, upgrading the Southern Downs’ failing infrastructure was identified as one of the key priorities in the 2021-22 budget.
Mayor Vic Pennisi said council staff estimated SDRC would need to find $30 million in the next three years to fix the sewerage network alone, with the funding boost only the first step of many.
“We certainly have a focus not so much on building new infrastructure, but on focusing this funding on areas it’s going to give us the most bang for our buck,” Cr Pennisi said.
“Council officers will know the (networks) that are most desperate. It’s all important, but they’ll be aware of which ones they have to prioritise.”
Cr Pennisi said the most pressing question remained where the council would be able to source an average of $10 million each year without forcing ratepayers to bear the heavy burden.
“Twenty to 30 years ago, (councils) only did roads, rates, and rubbish. What local government does has changed considerably over long periods of time, but what hasn’t changed is where we get our money from,” he said.
“Like any business, we need to look at whether we can reduce our input costs … or on the other end of that, are there other ways for us to get money.
“If it’s infrastructure that’s actually income-returning, it might be a paying proposition to borrow money to do that, but it depends what the infrastructure is.”
With councils receiving an average of three per cent of all income collected through rates, taxes, and levies, Cr Pennisi called on higher levels of government to fix the “broken system” and enable them to provide for their constituents.
“For every $100 bill that’s collected we get $3, yet (local governments) deliver 30 per cent of infrastructure and services,” he said.
“At some stage, we need to bang together as a group of local governments and argue the case for a better distribution of money from prosperity tax.
“We have stormwater infrastructure and water infrastructure as well. The thing that keeps me awake at night is the infrastructure cliff, and it’s all of that combined – the $30 million is only one component of that.”
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