Exclusive: Gold Coast rate rise to be more than 5 per cent as inflation hits home
The Gold Coast City Council is set to deliver a shock rates rise, with raging inflation closing the door on the low increases of the past decade ago.
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Gold Coast homeowners are facing a shock rate rise of more than five per cent with raging inflation closing the door on the low increases of a decade ago.
Mayor Tom Tate prior to councillors meeting in closed session at more special budget talks on Monday vowed the Gold Coast City Council would keep to his decade-long promise of rates below the CPI.
City sources suggest with inflation around 7.4 per cent, the rate rise will be 5.5 per cent.
Recent confidential updates sent to councillors confirm bosses at City Hall are working on a goal of “a target net price increase of less than CPI”.
But senior bureaucrats warn of higher water tariffs due to inflation and reduced revenue because water consumption dropped during periods of heavy rain.
Council last year approved a 4.3 per cent rate increase for the 2022-23 financial year, the equivalent of about $3.11 a week. The average general rate was $3903.58 – up from $3742.
Mr Tate on budget day last year warned that projects were being delayed as costs skyrocketed, and added that he was aware finances were tight for ratepayers.
A council source asked about this year’s budget preparations said: “The days of a 1.5 per cent rate increases are not realistic. CPI is seven per cent (up from six per cent last year).
“The rate increase will land around a 5 or 5.5 – but it will land below other councils. It’s unrealistic to think things will go back to the way they were.”
Council’s water and sewerage tariffs had been “relatively flat” with a six-year price freeze in place until the first increase in 2021-22.
The 2022-23 water bill increased by 3.5 per cent – below the June 2022 CPI figure of 7.3 per cent.
An updated council report considered in closed session shows the bulk water price, set by the State Government, has increased by 17.5 per cent since 2017-18.
Officers warn significant increases have occurred in capital programs with the largest in regional areas. Costs are increasing due to inflation.
“Majority of utilities are forecasting price increases above the CPI, however several utilities have marginal increases below the CPI,” a recent water update said.
Mr Tate asked about budget preparations said: “Cost of living is affecting everyone right now, including the council.
“However, I am committed to ensuring we keep general rate increases at, or below, CPI.”
Community Alliance leader John Hicks said ratepayers wanted a fair budget that benefited the wider community “and not just the big end of town”.
“It’s hard to understand why water rates would increase so much — we aren’t building any new dams,” Mr Hicks said.
Residents wanted increased funding to include more recreational public open space purchases, he said.
“We need public open space to keep pace with city’s rapid growth,” Mr Hicks said.
The City should stop wasting ratepayer money on “flawed big project ideas that alienate public land, largely for the benefit of just a few commercial operators”.
Ratepayers wanted better public transport across the whole city, not just the coastal strip, working in partnership with the State Government, Mr Hicks said.
“The greatest need for new, high frequency public transport is in areas such as Robina and the growth corridor at the northern end of the Gold Coast,” he added.
Council should consider redirecting funding for Gold Coast light rail Stage 4 into an improved, distributed transport network which establishes several well-located, efficient interchange hubs, rather than an expensive light rail spine, he said.
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