Council warns of tough budget next month

CRAIG WINTER

FRASER Coast Regional Council has just over a fortnight to find $29 million according to Mayor George Seymour and they are giving us fair warning of a ‘challenging’ budget for the region to be announced next month.

With Government grants reducing by $5 million next financial year, the effects of 7% inflation and an increase of up to 40% for some basic amenities, they are facing one of the toughest budgets yet, he said.

“Our electricity costs alone have increased by almost $3.5 million this year, making it more expensive to treat, process and deliver water.

“As our region grows, so too does the amount of waste we produce as a community.

“The combined impact of more waste and a decreasing State Government waste levy rebate will add $1.2 million to the cost of providing waste services across the region in 2023/24.”

Cr Seymour’s comments came just a week after the six Hervey Bay Councillors voted to close three of the smaller Maryborough tips along with that of Burrum Heads.

Council quoted a ratepayer saving of around $425,000 per year with their closures, but couldn’t avoid drawing the ire of residents and the other Councillors alike.

Division one Councillor James Hansen said that it was an ‘insane decision’.

“Particularly when at the same meeting they decided to spend 2.7 million on a roof in HB, I voted against as it (the tip closures) discriminated against people in the outlaying areas.”

Cr Seymour said there had been a marked increase in the cost of building roads, bridges and footpaths during the past three years.

“Concrete, for footpaths, bridges and gutters, has increased by 40 percent,” he said.

“In the past 18 months, the cost of building a kilometre of road has almost doubled.”

“Businesses supplying us have faced the same issues as Council, increasing fuel, electricity and labour costs, which have been reflected in the increased price of everything from road base to asphalt.”

The rapid price increase has also affected Council’s maintenance and renewal program. More money must be put aside to fund depreciation - the eventual need to replace assets such as roads, footpaths, drainage pipes, coastal assets, playground equipment and bridges as they wear out.

“The replacement value of Council’s 2,700 km road and footpath network jumped by 12.5 percent ($157 million) to $1.5 billion in the past year,” he said.

“That means more funds must be set aside to replace those assets as they wear out and to ensure we maintain our financial sustainability.”

Cr Seymour said Councillors were participating in multiple workshops to finalise the

2023/24 budget before it gets adopted in mid-June. He added, “Despite all these financial challenges, Council will be working hard to keep rate rises to a minimum while still investing in the services and facilities our growing community needs.”