Toowoomba council budget: Four per cent rate increase for residents as mayor Paul Antonio hands down $651m budget

Rates across the Toowoomba region will increase by 4% over the next year, slugging ratepayers with more costs during a period of high inflation. Here’s what’s inside it:

The Toowoomba Regional Council has handed down its largest budget on record and it includes its highest rate rise in nearly a decade.

Here is a breakdown of the budget for 2023-24:

Mayor praises ‘moderate’ budget despite major rate rise

Toowoomba Mayor Paul Antonio says the council’s largest budget since its inception is “moderate”, despite the organisation slugging residents with a 4 per cent rate increase to cover rising inflation.

Councillors on Tuesday endorsed the staggering $651m document, which involves the average Toowoomba homeowner paying nearly $3000 a year in rates and charges over the next 12 months.

On top of the 4 per cent general rate rise, the highest since 2014, residents will pay $700 for the water access charge (up 3.4 per cent) in 2023-24.

For a Toowoomba urban property valued at the median price of $209,753 and using the average amount of water of 182kL per year, the owners will pay $2900 in the coming 12 months – an increase of $129.

The budget, which has ballooned from $519m in 2022-23 due to inflationary pressures and increasing costs, includes an operational budget of $450m (up from $360m last year) and a capital works program of just over $200m (up from $159m).

Of these capital works, just 11 per cent ($23m) will be spent on new projects, with the rest focused on either renewing or upgrading existing assets.

Mr Antonio said the council wanted to keep the rate increase (which balances out to 3.81 per cent across all fees and charges) below the current national inflation rate.

He didn’t indicate that the organisation had looked at cutting services, pointing instead at the “failure” of higher levels of government to support councils across Queensland.

Mayor Paul Antonio (left) and deputy Mayor Geoff McDonald after delivering the Toowoomba Regional Council budget, Tuesday, June 6, 2023. Picture: Kevin Farmer

“There’s an expectation in local government that things will be delivered, but one of the points I will continue to make is the failure of the other levels of government to show the necessary respect and provide the appropriate amount of money to help local government deliver the services,” Mr Antonio said.

“There is a tremendous number of roads and infrastructure we have, and expectations in the community (are high) and it’s hard to fund it all.

“The rate rise is a moderate rate rise, and I think if you look back historically we’ve been very conservative with our rate rises.

“We’ve got to balance our books, we’ve got to provide services, there is an expectation that we have to provide given services, so this is a necessary rate rise.”

Deputy mayor Geoff McDonald said the council’s rising operational costs included an extra $50m for services and materials in 2023-24.

The council will spend nearly as much on materials and services as it will on capital works this financial year.

“The operational budget at $450m demonstrates the challenge we have, a significant part of that is materials and services,” he said.

“Over the past 12 months, there has been a 30 per cent increase in materials and services for products we use.

“The next financial year, this forecast is estimated to be $192m in materials and services.

“Our current financial year is around the $140m mark, so we’re forecasting an additional $50m for materials and services alone.”

Along with rate increases, the council will borrow $216m from the Queensland Treasury to help fund its projects.

The council has again achieved a “sound with neutral outlook” credit rating with Treasury, with Mr McDonald predicting a surplus of $1.1m.

Lake Cressbrook on the last weekend of the summer school holidays, Saturday, January 21, 2023. Picture: Kevin Farmer

Major projects pushed back by spillway upgrade threat

The looming $200m upgrade of Toowoomba’s dam spillways has forced the council to postpone work on major projects like the Charlton sports precinct and new CBD admin building.

The ticking time bomb upgrade of Cressbrook Dam, which has been hanging over the council’s head for several years, was a major financial pressure identified in the 2023-24 budget handed down on Tuesday.

The council needs to have it “substantially completed” by October 2025, with the work required by the Queensland government as part of changes in legislation.

Along with extensive flood recovery works across the region, Mr Antonio said the spillway upgrades threatened to derail the council’s sound financial outlook if the time frame wasn’t extended or extra support wasn’t provided.

“One of the jobs I’ve done is talked to state and federal politicians, and it’s only in recent times that they’ve said nothing other than a quick ‘no’, they’re starting to listen a bit now,” he said.

“It’s not our fault that we’ve got to put that money into a dam upgrade.”

Mr McDonald said the flood recovery works and spillway upgrades had forced the council to push back other major projects it had listed in its 10-year capital works program.

“I referred to the budget and this forecast as a defining period for us, with projects that are either once-in-a-lifetime or will change our landscape,” he said.

“(The spillways and flood recovery works) are big projects, one of them is worth our entire capital works program.

“The projects delayed for delivery include a new administration building, which will house about 500 of our staff, (and) it includes the $195m Charlton sports park as well.

“These are big pieces of work that can be done over a period of time, but it does mean that these things are delayed in some way.”

Capital expenditure in 2023-24 will be mainly focused on renewal and upgrades, with 71 per cent of the $201m program going on roads, footpaths and water projects.

There is also $12m for wastewater works, $16m for parks and recreation projects, $7.5m on community facilities and services and $15m on business strategy and operations.

The country club at Living Gems Toowoomba.

Retirement villages, non-strata units set for rate hikes

Residents living in over-50s villages and non-strata units will be targeted by the Toowoomba Regional Council through new rating categories in the latest budget.

Mr McDonald revealed the new categories, which will see significant increases in rates, were created as a result of a review into the council’s current system.

Mr McDonald said the new policies were developed out of “equity and fairness” for all ratepayers and would lead to significant increases for some.

One of those categories are for lifestyle and retirement villages, where residents don’t pay rates but instead a body corporate fee.

After delivering the Toowoomba Regional Council $651m budget are (from left) Cr Kerry Shine, Mayor Paul Antonio, general manager finance and business strategy Ann-Marie Johnston and deputy Mayor Geoff McDonald, Tuesday, June 6, 2023. Picture: Kevin Farmer

“It’s actually adding some rating categories to our rating model, and this is consistent with other local governments,” he said.

“A couple of those categories include the lifestyle and village categories, which will include the over-50s living style and also non-strata units, or flats.

“Effectively what that means is it’s introduced a new category for fairness and equity among the region.

“Someone who is living in an over-50s village, they’re rated in a different category because the owners currently get one rate notice, (but) the people living in those villages, they also use council facilities as well.”

Other new categories include large retail, resources and energy and high-intensity rural.

Mr McDonald said the increases would be staged over the coming years, with the council consulting with the community about them.

“Between two and three years, those increases will take effect so it’s easier for the community to budget for those,” he said.

It is understood the landowners, which manage the retirement villages, will be the ones receiving the new rates notice.

It would be up to them how residents cover the costs.

Earlier: Council releases largest budget on record

Toowoomba ratepayers already dealing with the rising cost of living will be hit with more financial pain after the council announced a four per cent general rate increase.

Mr Antonio handed down the final budget of his lengthy local government career at City Hall on Tuesday morning.

The $651m document predicts a $1.1m surplus for the 2023-24 financial year, with a whopping $459m dedicated to operations and $201m for capital works.

Much of this capital works budget ($109m) is actually focused on renewing ageing assets, while another $68m looks at upgrading assets above their existing service or condition.

Just $23m will be spent on new projects over the next 12 months.

The overall rates and charges increase, worth 3.81 per cent for most urban residents, will be another financial blow for families already struggling with inflation and rising living costs.

Combined with increases to water access charges and rates, waste services and other levies, it means most households will pay an extra $130 per year.

The four per cent general rate hike is the highest increase since the 2014-15 financial year, when ratepayers copped a 4.06 per cent spike.

Mr Antonio told the chamber the rise was “reasonable” and still below existing national inflation rates.

“Council’s budget considerations ensured the general rate increase was kept well below the national inflation figure, which has been five per cent or higher,” he said.

“Just as families and businesses have to keep close tabs on their spending, we at council are experiencing similar challenges across all our operations.

“Council is balancing reduced funding from the state and federal government, rising material costs, external and internal labour shortages like expectations continue to rise.

“We continue to work with our long-term financial sustainability parameters to make sure we can support our communities in the coming year.”

Water access charges for standard residents will increase 3.4 per cent, while residents not connected to bulk water will be slugged an 8.6 per cent rise to that charge.

Deputy mayor Geoff McDonald said a number of increases have been made to different rate categories based on the council’s first independent review of its rating policies.

“While the feedback indicated we had a sound model, it showcased tweaks we could make,” he said.

“Categories such as our retirement villages and non-strata flats will experience a notable rise.

“Where this has occurred, council will phase the increase over a number of years.”