Rising costs and Cressbrook Dam spillway upgrade spike Toowoomba Regional Council budget

Mayor Geoff McDonald has moved to assure the public about the council’s purse, after rising costs led to a revision of its budget deficit.

Toowoomba City Hall. TRC. Toowoomba council. Toowoomba, Ruthven Street. June 2017

The Toowoomba Regional Council is forecasting a $5.7 million deficit in its revised 2024-25 budget, thanks in part to a significant increase in its operating costs.

While the council has posted a $4.2 million increase in its operation revenue, this was outweighed by a $10.4 million increase to operational expenditure.

About $3.36 million of this increase has come from an increase in the State Waste Levy and extra cost to manage waste from the region’s growing population.

A further $2.25 million was attributed to the rising cost of electricity, chemicals and fixed term contract costs.

Its capital expenditure is up from $167 million to $221 million, the Cressbrook Dam Spillway upgrade accounts for about $50 million that increase.

Toowoomba mayor Geoff McDonald said despite the newly forecast deficit, the council was in a good financial position with healthy cash reserves.

“One thing I would like the community to know is the confidence we should have in our teams and in our organisation to work through potential a deficit, and we are trying to claw that back this financial year,” Mr McDonald said.

Mayor Geoff McDonald said the Toowoomba Regional Council is in a sound financial position. Picture: Kevin Farmer

“But to put that into context, our cash holdings, at the start of this financial year, the budget forecast was for $214 million in cash holdings at the end of this financial year, now we are approving a cash holding of $246 million.

“Now that holds us in good stead if there are some shocks, if there are things that happen and we know that they may well arise.

“The organisation is doing a terrific job in managing that the community should have confidence.

“We are in a good position, but that does not mean we do not need support from other levels of government.”

The council’s debt forecast is also down, from $214 million to $183 million.

“Council’s ability to service our debt has been forecast to remain within an acceptable range for the entirety of our Long Term Financial Forecast which is good news,” Mr McDonald said.

“Our unrestricted cash expense ratio also remains above target for the forecast period which means council has sufficient funds to cover the cost of future planned and unplanned expenses.

“Council has been realistic in the forecast of our capital program with a significant $55 million reduction in capital costs this financial year on the Cressbrook Dam Safety Improvement Project, with extra design works required and the recent significant water inflows from ex-TC Alfred also contributing to this.”