Fraser Coast Regional Council Budget 2022

The Fraser Coast’s deputy mayor has revealed why the council’s new Maryborough administration centre and library didn’t make it into the freshly minted budget and when it’s expected to be built.

Funding for Maryborough’s new library and council administration centre failed to make an appearance in the recently revealed council budget which delivered a rate rise of up to 3.9 per cent.

Now, the region’s deputy mayor has explained why amid concerns from Maryborough locals about the focus on Hervey Bay’s new library and administration centre which did receive $5 million in the budget handed down on Tuesday.

Councillor Paul Truscott told the Chronicle on Wednesday the Maryborough was just not listed for this coming financial year after late changes made to the plans.

“Council had previously made the decision twice to proceed on the site of the former administration building in Kent Street, but there was community feedback to change it to a different location and so we have taken that on board to investigate other options,” Cr Truscott said

“Fortunately, I can advise that the Maryborough Administration Building and Library are still included in Council’s 10 year capital budget (and it has been listed in the budget for a while now), it’s just not listed for this coming new financial year.

Cr Truscott said council officers were still considering the proposed alternative sites, with a report expected to come back to councillors at the next meeting on July 27.

He said at this stage, work had been “earmarked” to start on the centre in the 2025/26 financial year.

It’s understood Federal funding for the Hervey Bay project as part of the Hinkler Regional Deal was contingent on works starting by a certain date meaning the council would have missed out on $40million had it not progressed.

It comes after councillors meet at the Tavistock St chambers in Hervey Bay on Tuesday to adopt a tough times budget amid skyrocketing inflation and with a forecast deficit of $3 million.

Fraser Coast Regional Council budget meeting 2022.

Fraser Coast Mayor George Seymour told the meeting decision making on the $357m budget was a “difficult process” but the council had worked hard on a “sound and steady” plan amid a six-percent increase in inflation across Queensland, higher building costs, average land valuation increases of 30 per cent and four floods in five months.

“Against the backdrop of all these financial challenges, council has worked hard to deliver a financially sustainable budget and keep general rates revenue increase to 3.9 per cent,” Mr Seymour said

“For two thirds of ratepayers this will mean a general rate rise of no more than 3.5 per cent with almost half of all ratepayers having no general rates rise or a rates reduction”.

The mayor maintained the council wanted to reduce the burden on residents, passing on an increase which was “well below” the state inflation rate and which still allowed for rate capping in cases where ratepayers were adversely impacted by significant increased in state land valuations.

The building boom, he said, showed no sign of slowing down with more people realising the Fraser Coast was “the best place in the world to live” with development applications jumping from 636 in 2018 to 920 in 2020 and 1159 in 2021.

He also flagged a capital works spend of $118 million in capital works including $41.3 million for roads, bridges and drainage, $38.5 million for water, waste and sewerage, $3.2 million for parks, pools and playgrounds, $2.7 million for arts, cultural and community facilities and $1.6 million for footpaths and bikeways.

While the mayor thanked both the State and Federal Governments for partnering in several projects, he also referenced reduced government grants.

Like many other regional councils, the Fraser Coast suffered a staggering blow when Financial Assistance Grants (funded by the Federal Government but distributed by the State Government through an independent commission) were slashed as part of a bizarre change in classification which put the region in the same category as Brisbane and the Gold Coast despite its wildly different socio-economic statistics.

Both the Bundaberg and Fraser Coast mayors had previously warned the loss from local operations would likely lead to rate increases.

Earlier this year the loss of financial support for the Fraser Coast was estimated to be $4.63 million over the next three years.

Mr Seymour said on Tuesday that while there was a forecast deficit of $3 million, the council had forecast a deficit of $4.8 million the previous year and managed to deliver a $2.9 million surplus.

Staff wage increases, brought on by a union-led EBA dispute are also understood to have impacted council costs.

Asked why council wages should increase at a time when everyone was having to tighten their belts, Mr Seymour replied “we’re seeing people struggling right across the country”.

“Inflation is hitting communities right across the country whether it’s workers, businesses or councils …,” he said

“We have a wonderful team working for us and we struggle to get people to fill a lot the professional positions in our organisations, so it’s really really important.”

In a tight budget, there were no new major funding announcements.

However, big ticket items included $11 million to continue the Boundary Road extension, $12.3 million to start work on a new recycling centre and $5 million towards the controversial Hervey Bay City Centre revitalisation which includes the new library, disaster management centre and council administrative headquarters which will eventually cost more than $90 million (at least $50 million of this will come from the council’s budgets).

Councillor Denis Chapman said this year’s budget was “one of the hardest … for a long time” and thanked directors, managers and staff for their efforts.

Division 5 Councillor Jade Wellings said there was always “tension” between not wanting to raise the rates and giving the community what they wanted.

She also said from an individual councillor’s perspective endorsing a budget didn’t necessarily mean they agreed with all of it but respected the process.

Originally published as Fraser Coast Regional Council Budget 2022