Toowoomba council Cressbrook Dam upgrade to ask for up to $200m from state government

Toowoomba mayor Geoff McDonald says he hopes to know within months whether the state government will agree to provide financial support towards the $270m Cressbrook Dam safety upgrade.

The Toowoomba Regional Council will ask for up to $200m in financial assistance from the state government to help pay for the looming Cressbrook Dam safety upgrades.

Mayor Geoff McDonald this week handed in the business case for the $270m dam project to Premier Steven Miles in Brisbane, with the confidential document to determine if the council can secure a bailout.

It comes as the council grapples with the financial implications of the enormous upgrade, which must be substantially completed by October next year and is already behind budget.

The flow-on effects of Cressbook were felt in last week’s council budget, with Toowoomba residents seeing a 5 per cent rate increase, increased debt and delays to more than a dozen major projects.

Mr McDonald confirmed the business case would include modelling for $100m and $200m contributions by the state government towards the upgrade, highlighting the potential benefits for the community if a deal could be struck in either case.

Premier Steve Miles and Toowoomba mayor Geoff McDonald with the council's business case for financial assistance around the $270m Cressbrook Dam safety upgrades.

The latter figure is significantly higher than the “third-third-third” proposal made by the council in April, reflecting the difficulties in securing federal funding.

“We’ve modelled the benefits to the community of a $100m and a $200m contribution from the government,” Mr McDonald told News Corp.

“We’d spoken earlier about a third-third-third ($90m), and this talks more broadly about a contribution of up to $200m.

“It was good the premier took the time to meet with me, and it gives me great confidence.

“It gives me confidence that the government is in step with understanding the impact that this project will have on our future budgets.”

While the government in January confirmed it would support the council with Cressbrook pending a business case, the quantum of that assistance isn’t known.

Mr McDonald he hoped to lock in the deal before the October state election, after Opposition Leader David Crisafulli revealed last week he’d back any preceding funding agreements.

“I’m hopeful a decision will be made before caretaker (mode) kicks in, therefore it would be a government decision,” he said.

“The opposition leader has said if there’s something in the budget, he’ll honour that.”

While he wouldn’t rule out future large rate rises in the 2025 budget if a deal couldn’t be reached, Mr McDonald said he could foresee more delays to critical local projects due to Cressbrook.

“We need to work within our means, we can’t just keep adding capital projects to our budget,” he said.

“It’s important to get this funding, because our sustainability ratio targets (set by the Queensland government) will be affected.”

The council is still waiting to see if has secured federal funding through an emergency services grant.