New budget strikes balance to maintain services despite rising costs

Mayor Greg Williamson said council understood that many people in the Mackay region were doing it tough, with cost-of-living increases putting pressure on household budgets.

He said council, like any business or household, was also being impacted by rising costs.

“This has been a tough budget to frame, but we’ve worked hard to keep the cost of delivering services the community expects down as much as possible so as to not burden rate payers.”

The new budget, adopted by council today, includes a rates increase of 3.6 per cent, meaning the average residential ratepayer will pay $3623 per year. That equates to an extra $133 per year, or an extra $2.56 a week.

Mayor Williamson said changes in rates would vary due to a revaluation of the Mackay region’s properties by the Department of Natural Resources a couple of years ago.

He said the new budget would be the second year of averaging those new valuations.

Mayor Williamson said council was also reducing the discount for payment during the discount period from 10 per cent to six per cent in the new budget to provide a more “socially equitable” rating structure.

“The most vulnerable rate payers, many of whom must enter payment plans, aren’t eligible for the discount,’’ Mayor Williamson said.

“They are effectively subsidising rate payers who receive the discount,’’ he said.

The 10 per cent discount in the current year’s budget equated to $19.91 million in revenue raised but then distributed back to ratepayers who could afford to use the discount.

That will drop to $12.44 million in the 2024-2025 year due to the change to a six per cent discount.

The difference, of more than $7 million, can be distributed to council operations and ensure rate rises can be kept lower, meaning ratepayers not in a position to access the discount aren’t disadvantaged further.

Mayor Williamson said the budget delivered on council’s expressed desire over many years for rates increases to be in line with, or lower than, inflation.

“To be able to manage this in a climate of escalating costs while maintaining, or improving service levels, is a testament to the hard work of staff in driving efficiencies throughout the organisation,” he said.

“As well as increased cost pressures on council, we’ve had to factor in an increase in depreciation costs of $11.38 million this financial year, reflecting asset revaluations and construction cost increases.

“And once again, Federal Assistance Grants have been reduced, this time from $5 million last year to $4.5 million.”

The 2024-2025 budget forecasts $442.9 million in expenditure, including an operational budget of $313 million and more than $130 million for capital projects.

The budget delivers a modest surplus of just over $300,000.

“The budget reflects a large, modern, regional local government delivering extensive services and facilities,’’ Mayor Williamson said.

“The budget’s capital works program for this year is an ambitious $130.2 million.”

Mayor Williamson said this, of course, was the first budget adopted by the newly elected council following the local government elections in March.

“Thank you to the CEO and his team for around six months work to present yet another solid budget for our region and thank you to the elected body for the robust discussion that delivered the governance in shaping our budget direction,’’ Mayor Williamson said.

CEO Scott Owen said the budget struck a strong balance between maintaining or improving service levels and delivering an extensive capital program, without burdening rate payers.

He said the forecast surplus was financially responsible as it meant council was raising only the rates revenue it believed was needed to deliver infrastructure and services for the region.

“That is why we’re able to keep the rates rise at 3.6 per cent, which is in line with CPI, with no reduction in services,’’ Mr Owen said.

“We’re also able to deliver important projects as part of our capital works program and at the same time include ongoing investment in asset renewal,” he said.

“The budget is designed to ensure we are well positioned to meet the needs of the community, not only now, but well into the future as part of our Long-Term Financial Forecast.”

Learn more about the Budget 2024-2025