General News
25 June, 2022
Cairns Regional Council bets on a sustainable budget
THE COVID-19 pandemic presented a big hit to the Cairns community and its economy.
As a city that relies mainly on tourism and small businesses, closing borders and the isolation from the rest of the country took its toll on residents and businesses alike.
As industries slowly recover, the biggest challenge for Council is to deliver a budget that will minimise the impact on the ratepayers’ pockets.
On Wednesday, Council released their budget for 2022-23, announcing where they will be allocating the money and how much rates will be increasing for Cairns residents.
Cairns Mayor Bob Manning said it was the most challenging financial plan Council had formulated in the past decade.
“Council’s first post-COVID Budget is financially responsible and has a focus on fiscal sustainability, growth and an emphasis on looking after our community,” Cr Manning said.
“We are moving to a post-pandemic position that has new and increasingly difficult challenges.
“This Council has a longstanding commitment to keeping rate rises as low as possible while being realistic about the funds needed to maintain service delivery standards and the maintenance of assets.”
Council agreed on a rate increase of 3.1% or less for three-quarters of ratepayers.
“We acknowledge that ratepayers and residents are coping with the increased cost of living pressures, which is why Council has worked hard to deliver a general rate rise that is well below CPI, to ease some of that burden,” Cr Manning said.
QUEENSLAND’S CPI IS 6%
THE land valuations released earlier this year also impacted the rate increase.
“Due to the variations associated with those land valuations, three-quarters of ratepayers will receive an increase of 3.1% or less in their general rates,” Cr Manning said.
“As part of this process, Council has taken steps to remove discrepancies between rates applied to properties under a strata title and multiple dwellings on a single land title,” he said.
“Flats, townhouses and duplexes which are on one property title will now be charged per residence, bringing them in line with strata titles.
“We have also removed residential bands B and C, which means high-value properties no longer receive a discount.”
Another change flagged for the 2023/24 financial year is the introduction of a new rating category for non-principal places of residence.
With new rates in place, many challenges and changes come for Cairns residents, but what will Council be investing in for this budget?
LOCAL BUDGET OVERVIEW
For the 2022-23 period Council has delivered a budget of $393 million. Cr Manning said the purpose of this budget was to stimulate the local economy and provide for the community.
Being the first budget postCOVID, Council aimed for a conservative approach with a focus on fiscal sustainability, growth and an emphasis on looking after community and natural assets.
“While delivering a significant capital works program, we will also continue to maintain our vital assets to a standard that we are all proud of, from our roads, bridges and footpaths to our buildings, public amenities, bins and recreational areas,” Cr Manning said.
“Across the next 12 months, Council will spend almost $393 million in the community through materials and services associated with delivering capital works, maintenance, renewals and other services.
“Additionally, $49.5 million will be spent on maintaining 630 parks and nature areas, 625 kilometres of sealed footpaths, more than 200 connecting footbridges, 830 litter bins, and 70 toilet blocks.”
Tourism has again been recognised as the driving force behind Cairns’ economy, and Council will support this with $3.4 million toward marketing the region as a premier tourist destination.
A further $1.5 millionwill support major sporting, entertainment and cultural events that will deliver an economic benefit to the region, including the Cairns Ironman, Great Barrier Reef Masters Games and the Red Hot Summer Tour.
There is also a $5.8 million commitment to progress the Cairns Water Security – Stage 1 project.
Council welcomed the State’s Budget commitment to the Cairns Water Security Project Stage 1 as it eased significant financial pressure off Cairns residents.
KEY POINTS
COUNCIL HAS DELIVERED A BUDGET WITH A TOTAL OPERATING EXPENDITURE OF $351.6 MILLION
RATE RISE
General rate increase of 3.1% or less for 75% of ratepayers
Utility access charges increase by 3.1%
Fees and charges increase of 5% with some exceptions.
BROAD CAPITAL WORKS PROGRAM
Total Capital Works Program worth $144.6 million
$34.1 million on roads, bridges, drainage, kerb and channel, shoulder sealing, and bus stops
$28.1 million on improving the wastewater network
$32 million on water infrastructure
$27.8 million on community, sport, cultural and tourism projects
STIMULATING THE ECONOMY
$393 million will be spent in the community on resources, materials and services$4.8 million in grants, subsidies and contributions for events, arts and cultural initiatives activities, marketing and economic development activities
$3.4 million for Tourism Tropical North Queensland
$1.5 million to support and develop major sporting, entertainment and cultural events. C
