Toowoomba deputy mayor issues warning over impact of $200m mandatory dam upgrades
TOOWOOMBA’S deputy mayor has issued a warning over future budgets if the council does not receive assistance to cover $200 million in mandatory dam upgrades.
Council
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Cr Geoff McDonald said the council would be severely stretched to cover the cost of upgrading spillways at Cooby and Cressbrook Dams, which it is required to do by 2025.
Councillors discussed the matter during confidential meetings this week, with the TRC weighing up several options on how to met its obligation.
Cr McDonald said while the council would be able to refinance its current borrowings from the Queensland Treasury Corporation at lower rates, external funding would also be required.
“We’ve got to have it substantially started by 2025, 65 per cent, and then the balance of it by 2035,” he said,
“We’ve got these included in our capital works program, but we are transparently saying that our finances are at a limit.
“We’ve been able to cushion ourselves to a point (but) that doesn’t remove the fact that we are constrained to not do other things that we could do without those big ticket items.
“The State Government has given us the opportunity negotiate and reduce our percentages of debt — what we’ve identified is our debt is financed at between 3 per cent and 7.5 per cent right now, whereas Queensland Treasury Corporation is offering rates at below two per cent.”
Cr McDonald said it was meeting with the QTC to discuss the situation, saying all options were on the table.
“There are always various options, but we need to be mindful of our community,” he said.
“They’re like levers, once you’ve exhausted all your levers you’re in trouble, but we’re not there yet.”