In handing down the 2022/23 Budget, Cairns Mayor Bob Manning acknowledged it was the most challenging financial plan formulated by Council 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 Budget is framed against a backdrop of inflationary pressures, a tight labour market and an under-pressure construction industry, and the fear of longer-term recessionary impacts.
“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.”
The $393 million Budget includes a $144.6 million capital works program, which builds on almost $1.4 billion of community infrastructure delivered by Council over the past decade to improve the lives of residents.
Cr Manning said formulating the Budget had been difficult as Council looked to balance its commitment to keeping rate rises as low as possible, while delivering facilities and services to the community.
“The result is a general rates increase of 3.1% or less for three quarters of ratepayers,” he said.
“Inflationary pressures are impacting everyone, from businesses to families, and Council is not immune to those economic demands.
“We acknowledge that ratepayers and residents are coping with 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.”
Queensland’s CPI is currently 6%.
This year’s Budget has also been influenced by the release earlier this year of new land valuations, the first since 2019.
“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.
“In fact, just over a quarter of ratepayers can expect to pay less in their general rates this year, when compared to the last financial year.”
Cr Manning said Council had progressed on reforming its rating system to make it fairer and more equitable.
“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.
“I know this will be difficult for those property owners, but it’s about creating a level playing field where everyone contributes fairly.
“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.
Cr Manning said the over-arching ethos of Council’s 2022/23 Budget is to stimulate the local economy and provide for the community.
“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 million will 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.
In welcome news, the State Budget yesterday committed $107.5 million towards the project.
The commitment matches the Federal Government’s allocation, taking significant financial pressure off Cairns water users.
“We thank the Queensland Government, and in particular Minister Glenn Butcher, for their commitment which recognises how critical water security is to the future prosperity of our community,” Cr Manning said.
“I would like to recognise local State Government representatives Michael Healy, Member for Cairns, Curtis Pitt, Member for Mulgrave and Craig Crawford, Member for Barron River, for their support and advocacy.
“And finally, I’d also like to thank the Cairns community and businesses for getting behind this project and working with Council to achieve this outcome.”
Budget highlights
- 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, and
- $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
FUNDING NOTE: The Queensland and Australian Governments have provided some level of funding for some items listed within the Cairns Regional Council budget.
