THE Mayors of Scenic Rim and Toowoomba expressed their concerns about the viability of their Councils if the current system of financial support is continued.
In his opening address at the Public Hearing of the Inquiry into local government sustainability, Scenic Rim Mayor Tom Sharp said currently seventy per cent of Council’s income is from rates, with the remaining thirty per cent from grants, fees and charges.
“This is not sustainable in the short and medium term,” he said.
“Over the next decade Council will need to allocate funds for the renewal, replacement and maintenance of more than one billion dollars of community infrastructure, as well as the installation of new infrastructure to accommodate the region’s forecast growth.”
“Rates alone will not have the capacity to meet the needs and expectations of the region.”
Toowoomba Regional Council Mayor, Geoff McDonald, described the financial pressures on his Council, and said the current Federal funding model is “completely broken”.
He was asked how the State funding model compares and whether that is more helpful.
In addition to the provision of infrastructure, Scenic Rim Regional Council’s submission to the Inquiry also addressed the issue of attracting and retaining staff, describing this as ‘difficult’.
“Councils often compete with other levels of government and private companies which might offer more competitive salaries and benefits, and/or might be more established in the emerging roles/occupations.”
“This can make it challenging to find qualified individuals for specialised positions, hindering progress on critical initiatives.”
“Increasing remunerations without any associated changes in funding from Federal and State governments means this cost will be passed on to ratepayers within the community, many of whom may be approaching the limit of their financial capacity to pay ever-increasing Council rates.”
SRRC CEO, David Keenan outlined the difficulty Council faces when applying for grants for projects that must be shovel ready upon application.
“Our issue at the moment is trying to identify shovel ready projects, that means spending money beforehand,” he said.
Chaired by Luke Gosling MP and Member for Wright, Scott Buchholz, the public hearing also heard from Logan and Brisbane City Councils, Banana Shire Council and North Burnett Regional Council.
“Local governments are facing both escalating cost pressures and increasing community expectations,” Mr Gosling said.
“The Committee is interested in further exploring the key financial pressures, including the extent to which councils rely on Commonwealth and State and Territory program and grant funding to meet expanding service delivery obligations.”
