A south-east Queensland mayor has taken the unusual step of telling residents to brace for a rates hike in the upcoming council budget, citing high inflation and construction costs.
Key points:
- Moreton Bay council is warning residents of a rates rise in next month's budget
- Mayor Peter Flannery says rising inflation is hitting the council's projects
- South-east Queensland councils will be handing down their budgets next month
Moreton Bay mayor Peter Flannery told ABC Radio Brisbane he wanted residents to be prepared for the rates increase and not caught by surprise.
"It's never good news to say to people that rates are going to increase, but I want to be realistic, and I want to be open and transparent with the community, and say that rates will be going up this year," Cr Flannery said.
Last year Moreton Bay's rates rose an average of 3.9 per cent — an average increase of $62 annually. It was one of the highest increases in the south-east Queensland corner.
Brisbane City Council's rates rose an average of 3.75 per cent, followed by Ipswich on 2.75 per cent and the Gold Coast on 2.5 per cent.
Inflation impacts
Cr Flannery said the council's service delivery costs had risen by 14 per cent recently, which would not, in total, be passed on to the ratepayer.
He said the council had decided not to pause any infrastructure projects, with feedback from the community that those programs were needed to manage the region's booming population growth.
"We don't want it to come as a shock. I'm sure other councils in SEQ are going to be scratching their heads at this time as well, trying to work out how they're going to deliver."
The recent floods hit Moreton Bay with a $50-60 million repair bill, much of which will be covered by federal disaster relief funding.
Pauses to Brisbane projects
Last week, Brisbane Lord Mayor Adrian Schrinner announced multiple council projects had been paused as the council sought to cover the $330 million flood damage bill, including two green bridges and bikeway projects.
Cr Schrinner would not confirm if Brisbane ratepayers were facing a rate rise but said the decision to cancel or pause so many projects was the responsible thing to do.
Cr Schrinner had previously criticised the state government for not delaying land valuations that saw many flood-affected properties increase in value, warning those increases could see a rates increase for those homeowners.
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