Maranoa Regional Council hands down deficit budget, rate increases across categories

Maranoa Regional Council has handed down their budget for the 2024-25 financial year that forecasts a deficit, rate hikes and less capping, which is promised to support the region’s long term future. However not all councillors agree. DETAILS.

Maranoa Regional Council acting chief executive, Cameron Hoffman, and mayor, Wendy Taylor, handed down the 2024/25 budget on June 26.

For the first time in the new term, the Maranoa Regional Council has handed down their annual budget.

Talk of the Maranoa Regional Council’s financial position was a real bug bear in the period leading up to the March 2024 election.

With a new mayor at the helm of a largely overhauled council, an implicit demand for change, the council is taking a new financial approach.

In their budget, the council renewed its focus on revenue generation and poked some holes in the fiscal policies of the previous council.

Maranoa mayor Wendy Taylor said the $118.8m budget was geared to “restore” the council’s long-term financial position.

“I say upfront this budget forecasts a deficit,” Mrs Taylor said.

“That is not what I wanted but it is the budget that had to happen this year.

“Four years of rate freezes following a reduction in commercial, industrial and residential rates has proven to be the wrong strategy for our region.

“This budget is about being honest about where we are right now. This council has methodically and rigorously unpacked our financial position and it has been clear to all that we had to develop a new rates strategy.”

The new rating strategy includes a 5 per cent rate increase for residential and rural properties, and a 15 per cent rate increase for commercial, industrial and resource sector properties.

Mrs Taylor said a projected $7.3m collected from rural rates would go directly to maintaining rural roads, a policy implemented by the previous council.

Rural roads expenditure will be bolstered by close to $36m in state and federal funding, and will deliver an extension of bitumen on Bollon Rd, Yuleba-Surat Rd, and Redford Rd.

A Golder-era fiscal policy which has not escaped the overhaul is rate capping, which was introduced in 2021 and meant the stagnation of most rates, independent of property valuations.

This means property owners have been paying either too little or too much, depending on how their property value has changed since that time.

“This is not about raising revenue, it is about providing equity for all ratepayers,” Mrs Taylor said.

Capping will be removed from all categories, except rural, where a 50 per cent rate cap will be maintained to ease the transition.

All but one councillor voted for the new budget.

Maranoa Regional Council acting chief executive, Cameron Hoffman, and mayor, Wendy Taylor, handed down the 2024/25 budget on June 26.

In his second term as councillor, John Birkett found himself outnumbered as the only councillor who did not take issue with the previous council’s fiscal policies.

Mr Birkett, also a local business owner, was the only councillor part of the Unity Maranoa group to be elected into the current council.

In his opening remarks, Mr Birkett used the opportunity to draw attention to the successes of the previous council and the shortcomings.

“We have been consistently given the green light on the key financial indicators from QAO (Queensland Audit Office) on our financials, including last year,” Mr Birkett said.

“Over the previous term we achieved a number of key projects during very trying times.

“I feel compelled to address several crucial points that weigh heavily on my conscience as an independent representative of our community.

“As a second term councillor, I have consistently stood by the principles of financial responsibility and supporting local communities and businesses.

“These values have guided the decisions I have made for the five budgets I have been involved in.

“While I respect the viewpoints and opinions of my fellow councillors, I must voice my concerns on certain areas of the budget as I believe they do not align with the best interests of our ratepayers.”

Mr Birkett expressed concern that removing capping would implicate council’s “safety net”, and said he was concerned the council was increasing rates to fund things that were not essential.

“The recent decision to raise councillor wages substantially will undoubtedly impact this budget directly,” Mr Birkett said.

“The public also needs to be able to clearly clarify whether this budget includes increases to councillor conference, travel and training and councillor cars.

“While I acknowledge the importance of fair compensation and resources, we need to commit to the utmost transparency and leadership.

“If rate payers are doing it tough, we need to do it tougher.”

In their May 29 ordinary meeting, the council voted to adopt the remuneration schedule as set out by the governing authority.

The last time councillors voted on their remuneration was in 2022, where the council voted in favour of maintaining the remuneration from 2019.

At the time, Mr O’Neil, Mrs Hancock and Mrs Taylor voted against that decision.

As a result of council adopting the recommended 2024 schedule, there has been a considerable jump in councillor wages, but should be apportioned alongside the rate of inflation since 2019.

On the other hand, the other returning councillors, Cameron O’Neil, Johanne Hancock, Wendy Taylor, said this budget was the most rigorous they had seen in their time.

In his 12th year as a councillor in the region, Mr O’Neil told the assembly in Wednesday’s budget meeting he was impressed with the dedication of the new council.

“In my 12 years as a councillor, I’ve never been involved with a budget process like this,” Mr O’Neil said.

“Where I truly believe, we as the elected body have undertaken the most in-depth deep-dive into the workings of council, to fully appreciate the inner workings of council and its finances, which this council inherited on election day.”

Originally published as Maranoa Regional Council hands down deficit budget, rate increases across categories