Tom Tate in tough balancing act to build Lyric Theatre and keep rate promise

Mayor Tom Tate’s promise to keep rate rises pegged to CPI while progressing projects like the Lyric Theatre is coming under severe pressure as council battles with a looming budget crunch.

Mayor Tom Tate is facing his toughest budget, with his promise not to increase rates above CPI under threat from skyrocketing operating costs, increased staff wages and pet projects.

Mr Tate has vowed ratepayers will not see a 10 per cent increase to the general rate – being considered by neighbouring councils – but is not walking away from commitments to the light rail Stage Four, Gold Coast Arena at Southport and Lyric Theatre at Hota.

“It’s the toughest budget in the Mayor’s tenure – in terms of making things balanced, and getting the rate rise reasonable,” a City source said.

“Council’s costs would be three to four times higher than CPI. It’s a combination of those costs and the Enterprise Bargaining Agreement (struck with workers). Some really tough political decisions need to be made.”

Gold Coast Mayor Tom Tate during the 2024 Budget. Picture: John Gass.

The Mayor is the strongest supporter of trams, which the City funds 11 per cent of, with the final stage costed at $5.2 billion to $7.6 billion. Ratepayers are also on the hook to fully fund the Gold Coast Arena at $350 million. State and Commonwealth support will be needed to help pay for the $538 million Hota theatre.

Councillors have already decided to introduce a $5 gate fee at Gold Coast tips. Last year, they introduced a so-called ‘View Tax’ that hiked rates for high rise units, sparking a wave of protests.

Mr Tate said: “Since 2012 we have been a fiscally responsible council reducing debt and keeping rates relatively low and I think I can say for certain that our rates increase this year won’t come in anywhere near 10 per cent.

“I will also fight tooth and nail to retain the 10 per cent early payment discount as I promised I would during the election campaign.”

Councillors at the 2024 Budget. Picture: John Gass.

The cost pressures on council are mirrored in other local authority areas. Logan Mayor Jon Raven in February gave their ratepayers an ultimatum – either face an increase in charges or service cuts.

“Are you willing to pay more for better roads, parks, and facilities. Or should we cut services to make rate increases smaller,” Mr Raven told ratepayers in a video.

In Sydney, councils have voted to dish out rate hikes as high as 87 per cent.

Flashback: Councillors at the 2024 Budget. Picture: John Gass.

Councillors on the Gold Coast have been divided in debates held in closed session at special budget meetings.

Although Mr Tate has vowed to keep to his election promise of rates increases being at CPI levels – currently at 2.7 per cent – there is “argy bargy” from councillors wanting basic upgrades like roads, parks and community facilities in their fast growing suburbs.

Mr Tate said he was aware of commentary from other mayors about their financial challenges.

New updated designs for the planned Lyric theatre at HOTA on the Gold Coast.

Toowoomba City Council last year increased rates by an average of five per cent, but some areas in the region copped a 10 per cent hike.

“There is no doubt this is a difficult budget because households continue to do it tough and at the same time council’s costs for labour and materials continue to rise above the rate of CPI,” Mr Tate said.

“Councillors are working very hard in budget meetings to come up with a balance that keeps rates as low as possible, broadly in line with CPI, whilst at the same time not reducing service levels around our parks, beaches, libraries, roads and footpaths.”

City sources suggest the Mayor has a “plan B” to get funding for the Lyric Theatre at Hota. In 2024, he outlined a plan to develop a business case for the $538 million precinct.

“Projects like the Lyric Theatre remain a priority and I have had discussions with Premier Crisafulli and the Minister for Arts, John-Paul Langbroek, about how we fund that,” he said.

Councillors during the 2024 Budget. Picture: John Gass.

“I note that Brisbane is currently getting a second Lyric Theatre funded by taxpayers. Other major provincial cities, like Geelong, have had very significant State Government funding for their arts and culture.

“The Gold Coast needs top class arts and culture, and a 1600-1800 seat Lyric Theatre is the sweet spot if we want to attract big productions like Phantom of the Opera and Hamilton. I will continue to work on that with the other levels of Government but if it takes another year or two to finalise a funding deal, I am comfortable with that.”

Councillors have at least another two special budget meetings before the Budget is handed down on June 6.

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