Toowoomba Region Mayor, Geoff McDonald says fair, timely and untied funding from the State and Commonwealth Governments has never been more critical to allow local government to deliver the services and facilities that growing communities demand and deserve.
Mayor McDonald said local authorities across Australia were under immense pressure balancing growth with liveability, while managing ageing infrastructure across road, wastewater and water networks.
“Toowoomba Regional Council’s management of an asset base valued at almost $7 billion, highlights the extent of the financial challenge confronting our Council,” Mayor McDonald said.
“Against this backdrop, the Queensland Treasury Corporation in April 2024 completed its credit Review of Council.
“It was pleasing to note that despite escalating costs and a large capital program, Council’s credit rating was affirmed as Sound with a Neutral outlook.”
He said the Council, which today adopted its 2023/24 Annual Report, was focussed on delivering several multi-generational projects in this four-year term. Top of the list is the $270 million, State Government-legislated Cressbrook Dam Safety Improvement Program.
“We continued to deliver the Flood Recovery Program works, which are valued at almost $300 million (with the assistance of joint funding from the Australian Government and Queensland Government under the Disaster Relief and Recovery Funding Arrangements).”
“Our longer-term strategic work in 2023/24 included the progression of a new Planning Scheme that will set the platform for future growth and job opportunities. There will be further opportunities for community consultation across the Region.
“In the 2023/24 financial year, Council spent $231.14 million locally, in a further sign of our determination to support our Region’s businesses and their employees.
“The record figure represented 59% of the organisation’s spending with local suppliers for the financial year, which was just shy of our 60% stretch target.”
The Mayor said Council continued to be challenged by the rising cost of materials and services.
“The lack of the expected pre-payment of the financial assistance grant of $4.7 million has significantly affected the end of year result,” he said.
“Council generated an operating deficit in the order of $12.1 million for the financial year ending June 30, 2024, indicating the challenges around funding and delivery of major infrastructure projects.
“While a deficit was recorded, it is noted that our audited five-year average of 0.15% is above the required target (0%). During this five-year period, three years recorded deficits, and as such, highlight the precarious situation Council finds itself in with balancing the funding and delivery of major, multi-year infrastructure projects.
“The 2023/24 financial year ushered in a new term of local government following the official swearing in of the new Council in early April 2024.
“The new elected representatives committed to being financially astute, community-minded and people-focused in all our deliberations.
“We endorsed a new Councillor portfolio structure to enhance our strategic decision making.
“We will continue advocating for funding from the State and Commonwealth Governments, however this source of revenue continues to be reduced each year, which compounds our challenges.
“Local government would prefer to see the Federal Financial Assistance Grants restored to at least 1% of national taxation.
“I acknowledge and thank my elected colleagues and all Council staff for contributing to another productive year while progressing projects and delivering services across our Region.”
Council’s 2023/24 Annual Report, which was adopted at today’s October Ordinary Meeting of Council, also reported Council’s progress against the objectives listed in its Corporate Plan 2024-2029.
For more information and to view a copy of Council’s 2023/24 Annual Report visit http://www.tr.qld.gov.au/annualreport.
