Gympie council 2022 annual report reveals wage bill, $1.4m loss

Gympie Regional Council’s push for financial stability has hit a snag, with its books slipping back into the red after only a year of running at a profit.

Mayor Glen Hartwig said a “bloody tough” year was the reason behind the council slipping back into deficit for the 2021-22 financial year.

Gympie Regional Council’s books have slipped back into the red, recording a $1.48m loss for the “bloody tough” 2021-22 financial year due to floods and ever-escalating costs.

The loss was revealed in the council’s latest annual report, adopted by councillors at Wednesday’s general meeting.

The council recorded a small surplus in 2020-21, which was achieved after five consecutive years of losses, including one of more than $11m.

The latest report shows the council’s operating costs totalled $114.08m, almost $14m higher than the previous year.

More than $83m in revenue was raised through rates and utilities charges.

Employee costs dropped by about $500,000 to $38.6m, with the council at times struggling to fill more than 100 empty jobs.

The council’s own full-time equivalent staff numbers dropped from 478 in 2021 to 458 in 2022.

Councillors Bob Fredman, Dolly Jensen, Shane Waldock, Jess Milne, Bruce Devereaux, Mayor Glen Hartwig, Warren Polley, Deputy Mayor Hilary Smerdon and Dan Stewart were remunerated almost $800,000 in 2021-22. Councillor pay packets are determined by a state government body.

In contrast the council spent more than $45m on materials and services, up $7m.

Depreciation costs also jumped from $20m to $27m.

Chief financial officer Dave Lewis said at Wednesday’s meeting it had been a “difficult year”.

Challenges included the abrupt departure of chief executive Shane Gray, a trio of floods including the “largest in living memory”, and the costs involved in rebuilding from those disasters.

Councillors were remunerated $797,165 for the year.

Mayor Glen Hartwig’s pay packet including superannuation totalled $149,179 and deputy mayor Hilary Smerdon received $93,236.

The other seven councillors were each paid a total of $79,250.

About 30 per cent of the region’s roads were damaged in the 2022 floods, which also devastated parts of the CBD and public assets including parks and community halls.

Councillor wages are set by the Local Government Remuneration Commission, which is independent of Queensland’s councils.

Each councillor claimed between $8500-$8900 in extra costs, primarily related to vehicles.

The council’s chief executives and directors were paid a total of $1.076m.

All four of these staff members’ salaries sat within the $200,000-$300,000 pay band.

Mr Hartwig said following the meeting deficits “aren’t always desirable” but had to be considered in context.

“When you look at the last three years this council came in 2020 and we had to deal with a budget that had been adopted that had a $10m hole,” Mr Hartwig said.

“We then dealt with Covid and all the costs and stresses associated with that, followed by flooding.

“I even think mayors that are alive now would agree the challenges this council has faced now, no other council in the history of Gympie has faced.

“To get through that as far as we are and to have a $1.5m deficit … is a really good outcome.

“It’s been bloody tough.”

Mayor Glen Hartwig said the council’s deficit had to be considered in the context of a year in which the region was forced to deal with Covid and floods. Picture: Patrick Woods.

The report says about 30 per cent of the region’s roads were damaged in the floods.

This damage ranged from potholes to landslides.

Other public assets were battered in the floods too with “extensive” damage to parks, playgrounds, pools, military memorial sites, community halls, and the CBD itself.

More than 8000 tonnes of rubbish was dumped at Bonnick Rd in the wake of the February flood, more than double to normal monthly average.

A total of $1.82m was spent on consultants during the year, about $600,000 less than the $2.42m bill in 2020-21.

The cost of repairs and maintenance jumped almost $4m, to $12.7m.

Originally published as Gympie council 2022 annual report reveals wage bill, $1.4m loss