REDLANDS residents have been hit with a 4.72 per cent rate rise for the next financial year after Mayor Karen Williams handed down a $396 million budget headlined by two long-term community projects.
The rates jump equates to 98 cents per week for the average residential owner-occupier and comes as the council grapples with high inflation, supply chain challenges and ongoing pandemic impacts.
This year's rates rise is more than double the increase handed down to residents in 2021 but remains below the Queensland inflation rate, which currently sits at six per cent.
It is also lower than the almost five per cent hike announced in Brisbane City Council's record $4 billion budget, but is greater than the 2.49 per cent rise announced for neighbouring Logan.
Council has budgeted $15 million for the Redlands Coast Regional Sports and Recreation Precinct (stage one) and $12.7 million for the Birkdale Community Precinct's next stage in the 2022-23 financial year.
Capital expenditure for the same period will total $116 million, including $37.64 million for parks, open space and conservation and $26.77 million for transport, roads and traffic projects.
More than $20 million will go to the Wellington Street and Panorama Drive congestion-busting project and $4.41 million to the next stage of ferry terminal upgrades on Lamb and Karragarra Islands.
Redlands pensioners will also benefit, with rebates of $335 a year afforded to full-time pensioners and $167.50 for a part-pensioner.
Cr Williams said the rates rise would have been higher if not for council budgeting an operating deficit of $4.1 million for the 2022-23 financial year.
Last year the council announced a small operating surplus of $43,000.
"Despite land valuations increasing on average 25 per cent across the city, council has adjusted the rate in the dollar so as to not pass on these higher land valuations to ratepayers ...," Cr Williams said.
"To keep rates rises as low as possible, for the 2022-23 financial year, council is budgeting an operating deficit of $4.1 million."
Cr Williams said the council was able to invest in projects like the road upgrades at Wellington Street and Panorama Drive due to its strong cash reserves.
"It is important to point out that these projects will be funded through cash reserves as a priority over general rates, reducing the burden on ratepayers," she said.
"Council is facing external cost pressures including inflation and supply chain challenges that make it more expensive to do business.
"Decisions made by past and current councillors to put money away for a rainy day have resulted in strong financial reserves."
The capital expenditure program - which is the largest in council's history - also includes $18.08 million for water, waste and wastewater projects, and $10.04 million for infrastructure like transport, buildings and stormwater.
Cr Williams said the state government had hiked its bulk water price by 2.2 per cent to $46 million for the next financial year, representing 11.6 per cent of council's total $396 million budget.
Rates charges make up almost 29 per cent.
"Despite these challenges, council has chosen to absorb many of these external costs rather than passing them on to ratepayers," Cr Williams said.
"We are seeing upward pressure on wages across the board, and that affects everything inside and outside of our organisation.
"We are a city of islands and that comes with financial challenges. Everything is more expensive to barge over to our islands, so services are more expensive.
"We have very low levels of debt [and] our cash reserves are really healthy."