Southern Downs Regional Council budget: Mayor Vic Pennisi rolls out toughest budget in eight years

Southern Downs Regional Council has adopted their $79m annual budget, with rate payers set to feel the sting of the highest rate rise for the region in eight years. See the budget snapshot below.

Southern Downs Regional Council building. Photo Kerri Moore / Warwick Daily News

Southern Downs Regional Council has formally adopted their budget for the 2023/2024 financial year, with a focus on capital works alongside some rate pain for residents.

General rates will rise by 5.15 per cent up from last year’s rate of 3.85 per cent, with utility charges hitting the pocket hard at by 9.51 per cent, a staggering increase from last year’s rate of 4.69 per cent.

These massive jumps come as a result of the costs associated with the major capital works program that council promises to deliver over the next year.

The $79m program outlines 86 projects to be completed across the region, with the director of infrastructure Gary Murphy announcing plans to deliver 90 per cent of these works within the next year.

Below is a snapshot of the 2023/2024 budget now adopted across the Southern Downs.

Southern Downs Regional Council mayor Vic Pennisi.

BUDGET SNAPSHOT

• General council rates will increase by 5.15 per cent, with a collective fees and charges rise of 7.16 per cent;

• Director of infrastructure to deliver 90 per cent of capital budget works by 2024.

BY REGION

• 27.2 per cent of $42m individual funding allocated to southern part of region;

• 72.8 per cent of $42m individual funding allocated to north, east and western regions.

COMMUNITY, CORPORATE & FINANCIAL SERVICES

• 15.8 per cent allocated to community, corporate and financial services (includes redevelopment of Warwick saleyards and extension of Stanthorpe art gallery and library);

• $912k allocated to Community Grants Program;

• $175k allocated to festivals and events around the region;

Pensioners to receive $200 state government electricity concession.

ROADS, INFRASTRUCTURE, WATER & WASTEWATER AT A GLANCE

• $33.8m allocated to road upgrades;

• $32.6m allocated to flood repair works;

• $12m (or 26 per cent) of funding is allocated to water and wastewater projects.

CAPITAL WORKS PROGRAM AT A GLANCE

• $7m allocated to redeveloping the Warwick Saleyards
• $3m drought resistance program focused on upgrades to the water treatment plant, Connolly Dam supply and securing increased allocations from Leslie Dam supply or the Condamine River
• $3.5m smart meters program to manage network losses
• $3m upgrade to the Market Square - Warwick Wastewater Plant connection
• $1.5m recycled water main extension to Morgan Park
• $1.5m Black spot program to improve Warwick pedestrian strips and roundabouts
• $1m resheet gravel roads program
• $2m towards flood repair works for the non QRA funded section of the sealed road network
• $2.3m TIDS program which aims to reseal and rehabilitate Old Stanthorpe Rd and Inverramsey Rd - with potential funding allocated to Condamine River Rd bed level crossing project
• $2.2m Stanthorpe Waste Profile Capping and remediation of Stanthorpe landfill

During discussions on the budget, councillor’s Andrew Gale, Stephen Tancred, Sheryl Windle and mayor Vic Pennisi specifically acknowledged the strain this newly founded budget would have on the community and emphasised the next 12 months would be highly focused on improving financial sustainability across the region and the start of long-awaited infrastructure and water projects.

“This is not something to be taken lightly, because we have to walk a tightrope of financial stability as well,” Mr Gale said.

“Woe be to us if we were unable to fund the basic services that we need to do.”

Now in her second term of council, Ms Windle said this one was by far the toughest one that she’s seen implemented.

“Ideally we’d love to present a budget with a rate increase of only 1 or 2 per cent increase, or zero if we could,” she said.

“The budget is an indication of all the other rises that we’re all dealing with and it has an ongoing flow on effect through every aspect, angle and person that lives in our region, and it effects council as well.”

Mr Tancred also specifically addressed the recent influx of community concerns raised with council surrounding various community-based projects, road and infrastructure funding concerns.

“Our directors and managers prioritise the works to be done based on needs, not on wants or geography,” he said.

First meeting of Southern Downs Regional Council with Vic Pennisi as Mayor

Also in June councillors Mr Pennisi, Mr Gale and CEO David Burges attended the Australian Local Government Association national general assembly in Canberra, where a number of motions were put forward which address financial sustainability of local councils, climate change and renewable energy, improved transport and communications improved natural disaster management, closing the gap and housing and homeless strategies.

“We can’t continue to sustain local government just on rates, we're drowning in it and it’s very, very difficult when it’s the major source of your income,” Mr Pennisi said.

“I don’t know how local government can continue to provide 30 per cent of the services on 3.5 per cent of the total take, it’s a big ask and yet we continue to do it, which indicated to me that local government is by far the most efficient level of government in this country.”

Originally published as Southern Downs Regional Council budget: Mayor Vic Pennisi rolls out toughest budget in eight years