Rates blowout warning

Leaked memo tips 4pc but mayor shoots for CPI

COUNCIL rates are set to increase by more than 4 per cent in a pre-election blowout.

A leaked memo sent by Gold Coast Mayor Tom Tate to councillors on Thursday warns a blowout in operational expenditure would force rates up from July 1 unless urgent cuts are made.

A 4 per cent rise would translate to the average rate bill rising by $121 for owneroccupiers, with the State Government’s bulk water charges levied separately.

A furious Cr Tate contacted the Bulletin yesterday and confirmed he had sent the memo but insisted he still intended to deliver a rates increase in line with inflation.

“This is a warning to my colleagues – we need to do our homework, especially with operational expenses,” he said.

“If we walk into budget talks and have not done our homework, then there is the potential for the average rates bill to blow out by 4 per cent.

“This is an election year and fair warning; people do not like (rates rises).”

Last year the average rates bill increased 1.73 per cent or around $48.

The Mayor used last year’s budget address to talk up his economic record of delivering average rates rises at CPI since 2012. But council insiders say a large rates rise would be a major blow to all incumbents ahead of local government elections in March.

Cr Tate said he would propose steps to keep the average rates bill to inflation and urged colleagues to work with him.

“It is my intention to deliver a rates rise at CPI, which is currently around 1.9 per cent, but I can say now we will not cut frontline services,” he said.

“We must set an efficiency target and I will ask directors to look at themselves – is this going to give us value for money?

“My message to my colleagues is this, roll up your sleeves because we are going to go through this one line by line.”

The council is set to spend at least $34 million more on transport infrastructure in next month’s budget.

The amount of funding for transport works sits at $116 million but this could be increased to around $150 million.

But Palm Beach councillor Daphne McDonald said continuing cuts made it hard to deliver smaller community infrastructure such as the Palm Beach pool upgrade, which has been delayed by more than three years.

“Critical projects get pushed back and delayed,” she said.