Toowoomba mayor Geoff McDonald writes to Annastacia Palaszczuk, Catherine King over $300m Cressbrook Dam project

Toowoomba’s mayor has written to Premier Annastacia Palaszczuk to appeal for funding for a mandatory dam project now worth potentially $300m and if the state or federal government don’t step in, rates will go up. DETAILS.

Toowoomba ratepaying families could face an extra $270 a year in water charges for the next 80 years if the state or federal governments don’t help pay for a mandatory $300m dam upgrade project.

That’s the reality according to Toowoomba mayor Geoff McDonald, who has written to Premier Annastacia Palaszczuk asking for financial help over the Cressbrook Dam spillway upgrades.

In one of his first correspondences as mayor, Mr McDonald last week wrote to both Ms Palaszczuk and federal Infrastructure Minister Catherine King appealing for support on the mandatory project.

Mayor Geoff McDonald chairs a special meeting of Toowoomba Regional Council to endorse new deputy mayor, Friday, July 28, 2023. Picture: Kevin Farmer

The upgrade, which would see the dam’s spillway width increase from 20m to 65m and a wall height increase by 2.4m, is required under new state safety legislation and must be substantially completed by the end of 2025.

The estimated cost of the upgrade, which Mr McDonald revealed has ballooned to potentially $300m due to external economic pressures, is more than the Toowoomba Regional Council’s entire capital works budget for this financial year.

In his letter, Mr McDonald said the council faced impacting its sound financial position and deferring a number of major community projects if it was forced to pay for the entire project.

“Council had engaged with Queensland Treasury Corporation to analyse our capacity to secure debt funding (for) the original preliminary project estimate of $163.5m,” he wrote.

“However, the procurement process currently on foot has revealed that the required dam upgrade project is likely to cost council somewhere between $250m and $300m.

“(This) will compromise council’s financial capacity and adversely affect our ability to fund other essential capital works, including existing asset replacement and renewals.”

Aerial photograph of Lake Cressbrook, Thursday, January 05, 2012. Photo Kevin Farmer / The Chronicle Helicopter services courtesy of Heliwest Group

Mr McDonald said the council would be forced to slug ratepayers hundreds of dollars extra every year for the remaining life of Cressbrook Dam (80 years) if external funding couldn’t be secured.

“Without any form of government assistance and based on current interest rates, it is estimated that the impact on each ratepayer will be between $230 and $275 per annum over the life of the Cressbrook Dam asset,” he said.

“Throughout the state, less than 13 local governments have been impacted by these dam safety obligations (and) the extraordinary cost (Toowoomba) is currently required to fully fund is far greater than any other local government in Queensland.”

Annastacia Palaszczuk Premier of Queensland. – Photo Steve Pohlner

A similar letter to Ms King was also sent the same day.

Ms Palaszczuk’s office was contacted for comment but did not respond in time for publication.

Deputy mayor Rebecca Vonhoff told News Corp last month the required upgrade was all the more taxing due to the fact it did not improve water capacity.

“We need financial assistance with this, because what we would spend in an entire year on all of our capital works programs is what we will spend on this one project that doesn’t give us any extra water,” she said.