Rockhampton Regional Council has this week reached its initial draft Budget position for the 2022-23 budget which focusses on minimising the impact on ratepayers and driving internal efficiencies in a difficult economic environment.
The current proposals are still in the early stages and would see Council make $3.5 million in operational savings over the next three years to deal with externally driven budget pressures.
These savings are required as a result of an initial $2.2 million cut in grant revenue in 2022/2023, culminating in an overall loss of $6.8 million in grant revenue by 2024/2025, reduced revenue from the airport and the cost of carting water to Mount Morgan which has now reached $4.86 million.
Mayor Tony Williams said the proposed draft measures being considered for the upcoming Council Budget were still very much in the discussion phase and no final decisions had been made.
"Our Region is facing its toughest financial challenge since deamalgamation and with these challenging times, we have to make hard decisions," Mayor Williams said.
"When making these decisions, it is a delicate balancing act of trying to keep down the cost of living for our residents while ensuring our organisation is financially sustainable so we can provide the services and infrastructure our community needs and deserves both now and into the future.
"In looking at where we can make savings and increase revenue, we have adopted the approach of many small steps as opposed to large, sweeping changes.
"We believe this will get us to reaching the level of financial sustainability we need while minimising the impact on the community and organisation as much as possible.
"The hits to our Budget through COVID, the drought and cuts to our grant funding are beyond Council's control, but it is our responsibility to manage these reductions and looking after our ratepayers has been front and centre of these decisions," Mayor Williams said.
The proposed measures include the following savings:
- Reducing the consultancies budget by $250,000 and instead utilising specialists within the workforce;
- Increase fees and charges by a total of $330,000 with small-scale increases to charges in FRW, RRWR and Planning and Development;
- Reduce road maintenance costs by $1.2 million through smart technology measures such as LED street lighting which reduces Council's electricity costs;
- Reduce insurance premium by $50,000 and accepting higher excess fees;
- Over budgeted employee costs of $378,500;
- Small scale solar initiatives to reduce power bills by $50,000,
- Reduce community grants funding by $100,000; and
- Additional efficiency gains of $391,500
Further savings are also forecast if the proposal to close the SmartHub proceeds. That process is still in the consultation phase and has not been finalised yet.
On top of these savings measures, Mayor Williams said Council will also be investigating an indicative rate rise of 6% this year.
"We know any increase to the cost of living is hard for our community.
"But it is important that we get the balance right and if we cut too hard into the organisation to make savings, our community will be getting less services and less infrastructure and that creates worse outcomes for our region.
"I made a commitment at the start of the year that Council would keep the community informed and we would be transparent in our decision making, which is what we are doing.
"I have met with multiple Cabinet Ministers these past months as well as our local MPs and I have outlined the challenge ahead of us.
"Council will continue to advocate for the grant funding reduction to be reversed and for more government assistance to help us, because we don't want to see our community short-changed," Mayor Williams said.
Council notes from both the Australian Local Government Association and Local Government Association of Queensland's responses to last night's Federal Budget that Financial Assistance Grants remain a key driver to support local governments in the long-term and Council will continue to advocate along with those bodies in support of more funding from the Australian Government.
Council also this week decided to present an alternative proposal to Livingstone Shire Council on the Northern Suburbs Boundary Review. This proposal is confidential so that discussions can be carried out in good faith.
