Budgets

Wednesday 26 June,2024

In March, Maranoa residents overwhelmingly voted for change by voting for a new Mayor and independent Councillors with fresh voices and ideas.

On the day I was declared Mayor, I acknowledged that there will be many challenges and difficult decisions ahead. But I made the commitment that your new Council will face these issues head on – communicating openly and acting transparently, always with the region’s best interests at heart.

Today’s budget delivers on that commitment.

Over the last 8 weeks, Council has methodically and rigorously unpacked Council’s financial position.

Under the leadership of Acting CEO Cameron Hoffmann, this being my 5th budget as a Councillor, this is the most involvement Councillors have had in delivering a budget.

Whilst over this period, I did take leave a leave of absence, Deputy Mayor O’Neil and Acting CEO Cameron have kept me fully abreast of the day-to-day plans, actions and outcomes of developing this budget.

My core commitment as candidate for Mayor was to restore Council’s financials to a sustainable position.

I say upfront this budget forecasts a deficit. That is not what I wanted but it is the budget that had to happen this year.

It is clear that the four years of rate freezes following a reduction in commercial, industrial and residential rates has proven to be the wrong strategy for our region.

Last year’s budget promised a surplus. This paper surplus was to be achieved through cuts that were not specified, being made across the materials and services budget.

In our preparation this year, it has become clear that the surplus that was quoted for the 2023/24 budget was buffered by the revenue that comes from the State Government disaster flood allocation.

I don’t believe this Council should rely on disaster funding as a means to achieve a balanced operating budget.

In my opinion that is not the approach that sets our region up to be financially sustainable both now, or in the future.

I will not do that in this budget.

This budget is about being honest about where we are right now. 

Materials and Services

There is a body of work that this Council is yet to address and that relates to materials and services expenses of running Maranoa Regional Council.

What we could have done – but we didn’t – would be to simply chose a percentage to loosely reduce the materials and services of Council.

Previously that approach has been taken, however I would never have done that in my own businesses without detailed review and I won’t lead a Council applies that method either.

Between bringing down today’s budget, and the first quarter review scheduled for end of September, your council will go through line by line the materials and services expenses of running Maranoa Regional Council. 

We must do this methodically to ensure we manage any impact on the services that our community have come to expect to receive.

While starting with a budgeted deficit, it is my plan to finish this year with an operational surplus.

Debt

We have reviewed our current debt with the view of trying to pay off some our $14M of loans. However, with the interest rates on our loans currently less than the interest we are earning on our cash at bank, this was left at this stage. 

This said, we will continue to look at opportunities throughout this term if this changes.

Budget Overview

The two key elements of this budget are rates and sound capital investment.

Rates

It has been clear to all that this term of Council was going to have to develop a new rates strategy.

Capping was recommended as being – at most – a short term measure. It has distorted our rating system by being retained for too long for the wrong reasons.

We are removing the capping across all rates categories except rural, where we will maintain a 50 per cent cap as we make the transition.

This is not about raising revenue, it is about providing equity for all ratepayers.

No longer will a ratepayer with equal unimproved property values be paying more than another with identical unimproved property value.

Because of the unfairness of the current rating, some rates will go up, but for many rates will come down - some substantially so.

But our strategy for rates is about more than just restoring fairness.

Rates are how we invest in our future. It is important that when we go to other levels of government to ask them to invest in our region that they see that we are doing our bit also.

This year, in the budget that we have to have, there will be:

• A 5% increase in the rate in the dollar to residential properties
• A 5% increase in the rate in the dollar to rural properties, while maintaining 50% capping
• A 15% increase in the rate in the dollar to commercial and industrial properties
• A 15% increase in the rate in the dollar to resource sector and related properties

I know that this won’t come as a surprise to our Maranoa ratepayers.

So many of you have told me over the last 4 years that if we are going to set our region up for our children and grandchildren, we have to continue to invest at a rate that moves our region forward, not backwards.

Your Council is no different to any other business, the national inflationary pressures impact on Council’s ability to deliver our key services to you.

This is a point that so many businesses across our community have expressed to me directly, particularly over the last two years when we have all experienced record rises in our economy.

Capital Investment

While we are being sensible and frugal we are also looking responsibly to the future.

Roads

This budget maintains the previous council’s policy that 100 per cent of rural rates go to rural roads, a principle I have always supported.

This budget will see the $7.3 million collected from rural general rates go towards roads and drainage maintenance and projects.

This budget includes $42 million for roads and drainage projects with approximately $36 million funded from State and Federal grants.

Just some of the major works that we will see completed with additional funding from the Australian Government are:

• $10.5 million has been allocated in 2024/25 to continue the bitumen extension on the Bollon Road
• $14.5 million total allocated in 2024/25 for bitumen extensions on of both the Yuleba – Surat Road and Redford Road

These are just a few of the roads and drainage projects that will be undertaken across the Maranoa in 2024/25.

Denise Spencer Memorial Pool

This budget has committed to spend the $15+ million needed to rebuild the Denise Spencer Memorial Pool. This is a generational project that our entire region will benefit from.

This pool is now 50 years old, and we have reached the end of Band-Aid solutions that have been applied to the pool over the last decade.

I’m not criticizing this approach, but the time has come to fix it.

Facilities

Despite the position we inherited we are proposing a realistic and deliverable capital works program.

While we cannot boast record spending in this budget, we will ensure that essential services will be maintained to the level that the community expects.

At the same time, what we are able to spend has been designed to have the biggest impact across the region.

$2.7 million has been allocated to 14 projects to improve or develop facilities across the region, including $35,000 to upgrade the Mitchell RSL complex and $45,000 to reline the Great Artesian Spa.

$35,000 has also been allocated to the Roma Airport ambulance access auto gate to speed emergency access.   

This budget also commits to ongoing support for special initiatives including the Business Excellence Program, Maranoa Business Awards, Easter in the Country and Pinaroo Injune amongst many others.

These may be small projects individually, but they are significant investments into our regional communities.

Closing Remarks

It is no small task to bring together an annual budget, particularly in the year immediately after an election.

I would like to thank all of the Councillors and team of staff – particularly Acting CEO Cameron Hoffman, Cindy Irwin and Fleur Humphrey, for their hard work, effort and time that has gone into this developing this year’s budget.

We have a huge task ahead of us to set our region up for the long term.

I committed to you that I would communicate each step of this process and that is what I am going to do.

Over the coming weeks I will be writing to every single resident of our Maranoa community, to explain and provide detail of the decisions that your Council has made in bringing down the 2024/25 budget.

I will then oversee further correspondence that will go to each and every individual ratepayer and will provide you with the detail relevant to your property, so that there are no surprises from the decisions brought down in this year’s budget.

This budget forecasts a deficit of $7.5 million for the year, as well as the plan to manage this.

The deficit includes a one-off expenditure of $4.7 million to upgrade the region’s waste facilities and ensure they are compliant with State Government regulation.  

Previous budget surpluses have been buffered by the revenue that comes from the State Government disaster flood allocation. In a dry region, we cannot rely on disaster funding as a means to achieve a balanced operating budget.

This budget reflects Council’s plan to normalise finances by addressing our rates strategy to ensure it is fair and sustainable.

It outlines Council’s plans to conduct a thorough review of expenditure to find savings that reduce the deficit while not impacting the provision of services to the community.

This revue will be conducted in the first quarter of this budget period and reported upon.

This budget has removed the previous rates cap to address inequities between ratepayers and to ensure a sustainable approach to rates.

This budget:

• A 5% increase in the rate in the dollar to residential properties
• A 5% increase in the rate in the dollar to rural properties, while maintaining 50% capping
• A 15% increase in the rate in the dollar to commercial and industrial properties
• A 15% increase in the rate in the dollar to resource sector and related properties

An extended period of capping has seen residents with properties with similar valuations paying different rates.

While rates have been increased, the average increase across residential assessments is $45. However, 10% of residential ratepayers will see a decrease in their land rates.

The average increase across rural assessments is $244. However, 45% of rural ratepayers will see a decrease in their land rates.

Council will continue to offer a 5% discount on rates paid by their due date and will continue to augment the State Government's Rates Subsidy Scheme, offering pensioners a 50% rebate on general rates excluding fees and water consumption - up to a maximum of $235 per year.

Over previous years, Council has had access to State and Federal Disaster Recovery Funding arrangements designed to assist us to recover the costs incurred in repairing damage caused by natural disasters including floods.

Council cannot rely on these one-off funds in its financial forward planning.

This budget will see the $7.3 million collected from rural general rates go towards roads and drainage maintenance and projects.

This budget includes $42 million for roads and drainage projects with approximately $36 million funded from State and Federal grants.

Just some of the major works that we will see completed with additional funding from the Australian Government are:

• $10.5 million has been allocated in 2024/25 to continue the bitumen extension on the Bollon Road
• $14.5 million total allocated in 2024/25 for bitumen extensions on of both the Yuleba – Surat Road and the Redford Road

These are just a few of the roads and drainage projects that will be undertaken across the Maranoa in 2024/25.

Council has committed to spend $15+ million to rebuild the Denise Spencer Memorial Pool as a generational project to benefit the entire region.

Across the region, $2.7 million has been allocated to almost 14 smaller, but significant projects to improve or develop facilities designed to improve liveability for all of our communities.

A major focus for this Council is to advocate for the interests of our region. We will continue to work closely with the Local Government Association of Queensland, and the regionally focussed South West Queensland Regional Organisation of Councils.

Council is also working to re-build relationships with business and advocacy groups including Roma Commerce and Tourism and Toowoomba and Surat Basin Enterprise to work to support businesses vital for our continued economic growth and viability.  

The Maranoa faces a housing crisis that bleeds into every aspect of the economic development and liveability of the region by preventing us from attracting skills and workers. This impacts business, as well as such basic services as health and childcare.

Advocating on this issue will be a major focus for this Council.

In addition to the much-needed upgrade to the Denise Spencer Memorial Pool, Council is investing in facilities that will provide real benefits to communities. More than 14 projects will be undertaken including:

• Wallumbilla Community Project Precinct
• Upgrades to the Mitchell RSL Complex
• Relining at the Great Artesian Spa, Mitchell
• Safety works at the Injune Caran Park
• Improvements at the Warroo Racecourse

Well-equipped and maintained recreational facilities benefit the whole community. An investment in community amenities ensures that the Maranoa is an attractive region to raise families, and also for visitors and tourists.

This budget commits $880,000 for the following:

• Parks Repairs across the region
• Roma Pump Track upgrades
• Injune Railway Station Park improvement
• Heroes Avenue, Roma

Events including Easter in the Country and Sculptures Out Back grow year-on-year, introducing more people to our community, as well as being a source of inspiration and pride for residents.

Council will continue to support these events, as well as the Business Excellence Program and Maranoa Business Awards.

As the country gateway to the Outback, the Maranoa region is blessed with natural beauty, as well as excellent tourism attractions and events.

Council was proud to have driven the submission that saw Roma named as Queensland’s Top Tourism Town this year and will work to ensure that the region capitalises on its growing recognition.

Council is currently undertaking major works to bring ensure its waste facilities meet current State Government requirements.

A one-off investment of $4.7 million has been made to upgrade Council’s facilities and $2.85 million is being spent to convert Surat, Injune and Yuleba facilities to transfer stations and associated works.