New $50m COVID-19 package approved in council budget

THE council will borrow an extra $25m to fund an innovative $50 million COVID-19 stimulus package in its latest budget.

THE Toowoomba Regional Council will borrow an extra $25 million to fund an innovative $50 million COVID-19 stimulus package in its latest budget, which will be targeted at local businesses and contractors.

The second stage of the TRC's response to the economic crisis was the centrepiece of the $567 million budget for 2020-21, which was unanimously endorsed by councillors yesterday.

Deputy Mayor and finance chair Cr Geoff McDonald said along with a standard $165 million capital works program, the council would fund 64 shovel-ready projects that would be heavily weighted towards local contractors.

"This council has broken new ground by way of separating a capital budget, some $215m, into two parts," he said.

"We've separated a capital budget so we have $50 million going directly into our community for local businesses.

"This is an innovative way for local government to deliver a capital works program.

"The intent of bringing the budget forward (to June 15) was so that by July 1, we will have projects out for procurement and ready for local businesses to take advantage of."

The council will borrow an extra $25 million from the Queensland Treasury to help pay for the special capital works program, bringing its total borrowings to $60 million for the 2021 financial year.

Of its standard capital works, nearly $110 million will be spent renewing ageing infrastructure like pipes and roads, generating an asset sustainability ratio of 102 per cent.

Cr McDonald said the council was aiming to keep its "sound" financial rating with the Queensland Treasury Corporation.

Mayor Paul Antonio said the new budget was a good response to the challenges of COVID-19.

"It's a very responsible budget, and council is in a strong financial position," he said.