THREE councillors have questioned the spending announced for major capital projects in Redland City Council's $396 million budget, as residents are hit with a 4.72 per cent rate rise.
Mayor Karen Williams handed down the budget on Thursday, announcing a record $116 million capital spend for the 2022-23 financial year and a projected operating deficit of $4.1 million.
The council has budgeted to dish out $27.7 million on the Birkdale Community Precinct and Redlands Coast Sport and Recreation Precinct, both of which will be built in stages over the coming years.
Cr Williams said the majority of projects in council's capital expenditure program for 2022-23 would be funded through cash reserves, with rates mainly going into council services.
Councillors Wendy Boglary, Adelia Berridge and Paul Bishop spoke out against the record capital spend and criticised a lack of forecasting for project costs.
Cr Boglary said the budget was not appropriate in the current economic climate and the 4.72 per cent rates hike was significantly higher than she was willing to accept.
The increase is more than double the 1.7 per cent rise handed down in 2021 but remains below the current Queensland inflation rate, which sits at six per cent.
"I cannot support the rate pressure on our community as I cannot reconcile the quantity and size of projects we are raising funds for without a financial forecast for at least five years," Cr Boglary said.
"I understand the range of fundraising options available and it isn't these mechanisms but the timing and purpose is what I call into question.
"I could perhaps have supported the budget if it was based on more appropriate projects for Redlands with realistic delivery timetables.
"The budgeted [capital expenditure] work exceeds council's actual historical delivery by some 65 per cent."
Cr Berridge said council should be scaling back projects to mitigate its financial risks and refuse to adopt new large-scale projects.
"Until we take a page from Brisbane City Council budget and reduce the number of projects, especially with the unknowns for the Olympic Legacy, I can't support the budget," she said.
The council forecast a small operating surplus of $43,000 in 2021-22 but is projecting a deficit of $4.1 million for the 2022-23 financial year.
Cr Williams said the budget handed down was "responsible" and the council remained in a strong financial position with low debt levels.
"A city-wide average of a 25 per cent land valuation increase is the first state land valuation since 2019, and is owing to the global pandemic and demand for land and properties in our city," she said.
"Without responsible management this valuation increase would have led to a significant rate increase for our community.
"We weren't going to allow that to happen and so instead we chose to absorb much of this revaluation."
Cr Bishop called for council processes to be brought in-line with community expectations while also raising concerns about a lack of long-term budgeting for the city's two major projects.
"I'm not convinced that we have the renewal and non-renewal ratio right," he said.
"It appears to be a reversal from previous years. Its departure from our stated commitment to consider existing assets more favourably than creation or purchase of new assets.
"I'm concerned that just two of the major projects planned for future years - Heinemann Road and the Birkdale Community Precinct - they have a total budget of nearly $500 million.
"I can't see that in our projected future budget."
Read more local news here