GC COUNCIL BUDGET Recovery plan sends debt higher

FULL STEAM AHEAD FOR PARKLANDS goldcoastbulletin.com.au

PAUL WESTON, ANDREW POTTS AND BRIANNA MORRIS-GRANT

GOLD COAST Council debt is tipped to blow out by $210 million as the focus turns to funding roads, community projects and rate relief during COVID-19 – not bigger handouts to tourism bodies.

Many struggling Gold Coast ratepayers will welcome council’s 2020-21 budget, promoted as a “rate freeze”, where the average rate bill is below $1600.

Council’s big pitch to fight the economic downturn from coronavirus is a $26.9 million support package for community and business, the highlight being a financial rebate of $64 on annual rates for about 137,800 properties.

Mayor Tom Tate who described it as one of his “toughest budgets” since taking office in 2012 told the Bulletin: “We’ve come through this together and I’m confident we’re on the road to recovery.” Key projects are:

$8.9 million for Stage 3 of light rail from Broadbeach to Burleigh, with another $1.75 million locked in to identify the route options for Stage 4 of the trams to the city’s airport;

$35.4 million for the Art Gallery at HOTA to be finished;

$8.2 million for design completion and building of the Robina City Parklands;

$9.3 million for Major Events Gold Coast, the new super events group;

$40.6 million for Pimpama sports hub.

Division 14 councillor Gail the new

O’Neill was celebrating the trams moving south, and transport committee chair Pauline Young forecast Stage 3 would be “shovel ready” before the end of the year.

Deputy Mayor Donna Gates and new councillor Mark Hammel predicted the city’s north was a huge winner with a host of million-dollar projects, and Robina’s Hermann Vorster described the parklands’ funding “like Christmas morning”.

Council insiders said there was no opposition to yesterday’s budget from councillors because the Mayor shelved more funding for pet projects like the offshore cruise ship terminal at The Spit and a cableway in the hinterland.

“The CST is gone. There is no money for a cableway. There is a lot of stuff there to help with coronavirus. It’s one of the more sensible budgets,” a council source said.

The biggest row was outside the council chambers about tourism funding. Destination Gold Coast had asked for an extra $4.1 million to entice more tourists but received $15.5 million – the same as last year – after Cr Tate described their original pitch as “underwhelming”. The Mayor’s remarks put a spotlight on Destination Gold Coast CEO Anneliese Battista and chairman Paul Donovan who pitched councillors twice at special budget meetings.

Ms Battista said council had a “difficult job” and thanked councillors for their funding retained at the same level.

While spending and operating costs remained similar to last year, debt was forecast to blow out by more than $200 million in the next five years.

The council’s annual report, released as part of the 2020 Budget, reveals debt will increase from $615 million in 2019 to $663 million this year and is forecast to hit $825 million in 2025. It comes after trending downwards from a peak of $730 million in 2011-12.

“Total debt is forecast to increase over the next few years from $615 million in June 2020 to a peak of $825 million in June 2025 as council delivers a number of major infrastructure projects to reduce congestion on roads, expand the public transport network and to meet demand for new and improved community facilities,” the annual report said.

“Debt is then projected to decrease back to $612 million by June 2030. Despite the increased debt outlook in the medium term, council will remain well within debt ratio benchmarks set by the State Government and Queensland Treasury Corporation.”

The report highlighted QTC’s 2019 credit rating for council, which was “sound” with “positive outlook”.

THE Gold Coast is on track to see a Robina site transformed into the city’s biggest community park after it was allocated $8.27 million in the council budget.

The Robina City Parkland project, at a multi-million-dollar site next to Cbus Stadium, began early works in April last year.

It has now been labelled one of the budget’s big successes by Division 11 councillor Hermann Vorster, who has long championed the project.

“When I came to office the ambition for that precinct was a toilet block and an outdoor adult obstacle course,” he said.

“A few years ago we went right back to the drawing board and delivered a plan, and that plan has now earned $8.2 million.

“And we’ll see something that had been put on the shelf actually brought to fruition,” Mr Vorster said.

The money has been allocated to provide picnic facilities, playgrounds, event space and walking tracks at the site, which was once tipped to become an ecovillage.

The land was the last piece of developable land within the stadium precinct when handed over to council earlier this year.

Robina resident and A Body 2 Fit Triathlon Club director Jenny Darwick said she was excited to see a new exercise spot in the area.

HOW YOUR

“I’ve been coaching in the area since 2010

DIVISION

so triathlon really needs the extra

SCORED IN

space,” she said.

“There’s not a

THE BUDGET

safe area (in the division) for kids to ride their bikes and run.”

CEO Dale Dickson remains confident about council’s ability to pay back debt and maintain its credit rating.

“COVID-19 will not impact on the City’s borrowings in the short or long term. The notional borrowings over the next decade are directly related to the planned provision of growth related, city-building economic and social infrastructure,” Mr Dickson said.

“The timely provision of the right public infrastructure is a key to ensuring the future liveability of the Gold Coast as it grows over time. The City has the overall financial capacity to adjust and respond effectively to external opportunities and circumstances such as COVID-19, the Commonwealth Games, natural disasters and much more.”

Councillors were asked to list the specific projects and funding received for their division. The complete list can be found on the Bulletin website.

THERE IS A LOT OF STUFF THERE TO HELP WITH CORONAVIRUS. IT’S ONE OF THE MORE SENSIBLE BUDGETS

COUNCIL SOURCE