Slight rates increase in council budget

THE Gold Coast City Council is poised to bring down a budget with a rate rise similar to CPI increases, leaving the city still to pay off debt of almost $643 million.

But the city’s resident ratepayer lobbying group is forgiving of the deficit, welcoming predictions Mayor Tom Tate will deliver a budget tomorrow with just a small rate increase.

The group says it will forgive the council for the budget deficit as residents prepare for some serious financial belt tightening post-Commonwealth Games.

Cr Tate is expected to hand down a budget at 10am tomorrow with a rate rise of 1.73 per cent. Many ratepayers will face a general rate increase of about $48.

Most details of the budget have been discussed behind closed doors at special budget meetings, but projections of loan borrowings and debt have been released on council meeting papers.

The 2017-18 council budget included loans of just less than $41 million and included another loan of $2.3 million for capital works.

Since a review in March, some funding allocated to major projects like the Palm Beach shoreline and Northern Gold Coast Sports and Community Precinct has reduced the loan requirement.

The council expects it will now need $31.2 million in total loans rather than the $43.3 million originally forecast.

Documents confirm the Queensland Treasury Corporation conducted a credit review last year and in late February the council received approval for loans up to $41 million.

The council had a debt balance of $686 million in June last year. Based on the current loan program and paying off debt of $75 million, it should be reduced by the end of the month to $642 million.