Community
1 July, 2024
Depreciation costs hit hard
DEPRECIATION costs have smashed Cassowary Coast Regional Council’s 2024/2025 budget, accounting for a third of $103 million in expenses.
Councillors also refused to accept a 10 per cent rise in rates at their first budget workshop and have managed to whittle it down to five per cent.
Mayor Teresa Millwood told the special budget meeting Wednesday that she would not accept a rate rise without “forensically seeking cost savings first”.
“I made a commitment to the community when I was voted Mayor earlier this year to keep this council focused on essential services of roads and rubbish, and to provide ratepayers with value for money,” she said.
“This year our budget has been heavily impacted by inflation which has seen the cost of building roads and basic infrastructure increase substantially.
“Ambitious waste reduction targets set by the Queensland Government have increased our costs for waste and resource recovery operations by 30 per cent.
“And a mandatory transport revaluation of council’s roads, bridges and pathways has resulted in a whopping 32 per cent increase in depreciation expense.”
The 2024/25 budget provides for $103m of expenditure for operations which is made up of:
$33m for employee expenses
$33.8m for materials and services
$36.3m for depreciation.
“This is by far the greatest amount of depreciation required to be accounted for within any of our council’s prior budgets, representing one-third of our operational spend, and $4.1m more than last year’s budget,” Cr Millwood said.
“Without intervention, these increased cost pressures would have resulted in an 10 per cent rate rise which I refuse to accept, so we’ve been going through every line with a fine-tooth comb to find savings at every opportunity,” she said.
“Thankfully, through $1m in operational efficiencies we’ve been able to bring the minimum increase in residential general rates to five per cent.
“I am deeply conscious of the effects of cost-of-living pressures. We have worked hard to keep the five per cent discount for rates paid by the due date, and the pensioner discount of $300 – one of the most generous in the state.”
“Council will continue to offer interest-free payment plans to residents who are in hardship.”
Cr Millwood said she was pleased kerbside recycling would finally being provided in 2025.
The budget invests in the region’s future with a record $70.4m in essential capital investment, including:
$17.9m towards CBD revitalisation
$27.1m for water and wastewater infrastructure
$11m for road improvements, pathways, bridges, culverts and recreation areas
$5.2m for stormwater drainage
$2.4m for waste and resource recovery.
“The renewal of our fundamental needs ensures our future prosperity. And thankfully, the Queensland and Australian governments have come to the party in helping us deliver some of these projects through more than $21m in grant funding,” Cr Millwood said.
“We need to try and encourage people to come and live here, so we’re looking for ways to attract and support businesses and cultivate industry in the Cassowary Coast.
“To help do this, the budget allows for key community and economic development projects including a priority development area plan of Mourilyan Harbour and the launch of a Cassowary Coast Investment Prospectus.”
