Toowoomba Regional Council adopts 2022/23 Annual Report

Despite another year of economic uncertainty, ongoing supply chain challenges and labour shortages, Toowoomba Regional Council maintained its focus on delivering services for residents across the 2022/23 financial year.

Council’s 2022/23 Annual Report, which was adopted at today’s (Tuesday, October 24, 2023) October Ordinary Meeting of Council, also reported Council’s progress against the objectives listed in its Corporate Plan 2019-2024.

Toowoomba Region Mayor and Finance and Business Strategy Committee chair Cr Geoff McDonald today thanked fellow Councillors, Council’s executive leadership team and staff across all operational areas for their efforts across another challenging year.

Mayor McDonald said it was especially pleasing to highlight Council’s disciplined financial management had resulted in the Queensland Treasury Corporation (QTC) maintaining its assessment of a ‘Sound’ credit rating with a ‘Neutral’ outlook.

“Council closed out the 2022/23 financial year, with less than a 1% variance on our revised capital expenditure budget,” Mayor McDonald said.

“Given the current economic environment and the way prices have fluctuated so much over the past couple of years, this was an excellent result from our staff.

“The capital expenditure budget for the 2022/23 financial year was $173,064,270, with the final spend coming in at $171,376,569.

“Our community can be confident that the organisation is making good on its promise in relation to the delivery of capital works. I acknowledge and thank all Council staff for contributing to this achievement. This is particularly noteworthy given the competitive job market and challenges around retaining staff, which has been a theme across the nation.

“In the 2022/23 financial year, Council spent $163 million locally, in a further sign of our determination to support local businesses and jobs. This worked out to 56% of our Budget, just shy of our internal target of 60%.”

“While Council is fortunate to be in a sound financial position overall, this will be challenged in the next decade with many large, multi-generational projects on our books.

“Council must complete the mandatory Cressbrook Dam safety upgrade works to satisfy obligations defined in the Department of Natural Resources, Mines and Energy’s (DRNME) Dam Safety Condition Schedule. The upgrade project will not increase the water storage capacity for Toowoomba Region residents. This is in addition to the ongoing Region-wide flood recovery works.

“These two critical infrastructure projects, which are both valued at more than $200 million, illustrate the additional cost pressures facing Council. To demonstrate the magnitude of these projects, our average total capital spend over the past three years has been $162 million.

“The priority that must be given to these major infrastructure projects will place additional pressures on the delivery of other projects listed in our 10-year Capital Works Program.

“Council is determined to keep delivering for residents and will continue advocating for state and federal funding to relieve costs for ratepayers.

“In the wake of three State Declared Disaster Events, Council completed more than 7600 emergency repairs to the Region’s road network. The permanent reconstruction phase of the Flood Recovery Program started in September 2022 with Council’s own Construction and Maintenance crews completing the priority works.

“Council selected two preferred contractors to help with the delivery of the 2022 Flood Recovery Program. More than 1800 roads across the Toowoomba Region were assessed for flood damage, with approximately 5500 sites damaged.

“These details were included in 21 submissions for funding provided through the jointly funded Commonwealth-State Disaster Recovery Funding Arrangements (DRFA).

“Where we can, we will advocate for funding from the State and Federal Governments, however this source of revenue continues to be reduced each year, adding to our challenge.

“Council generated an operating surplus in the order of $4.3 million for the financial year ending June 30, 2023. While Council was forced to balance the rising cost of materials and services, like other organisations, the pre-payment of the financial assistance grant of $8.9 million supported the end of year result.

“Local government would prefer to see the Federal Financial Assistance Grants restored to 1% of national taxation, as was the case previously. Our financial planning would also be greatly aided if these grants could be paid in advance.

“While Council is focused on keeping any rate rises to a minimum, we have a responsibility to our residents to manage our finances in a prudent fashion.

“For the 2022/23 financial year our asset sustainability ratio was 55.77%, which is outside the Department of State Development, Infrastructure, Local Government and Planning target range of 90%. However, the ratio sits just outside the new target.

“A new financial sustainability framework has been released by the Department and applies to all local governments from July 1 this year. This new framework identifies a target ratio for Council of greater than 60%.

“Although we’re outside the current 90% target, we know that our growing community requires new infrastructure to support this growth and it’s important we get the balance right between building new and renewing existing assets. We believe the new framework, which has identified for a Tier 2 council like us, that a more reasonable target is that of greater than 60%.

“With an asset base of $6.4 billion, it is more apparent than ever before that we must continue to fight for more funding from the state and federal governments to not only assist in maintaining and operating these assets, but to support long-term sustainability.

“Both the net financial liabilities ratio and the operating surplus ratio are within target ranges.

“Taking all these factors into consideration, Council is in a sound financial position to deliver its budgeted projects and services for the 2023/24 financial year and beyond.

“I acknowledge the leadership of former Mayor Paul Antonio, who was in office for the term of this Annual Report, before retiring after almost 42 years in local government on July 21, 2023.”

Mayor McDonald said local suppliers and contractors helped Council deliver major projects across 2022/23 that delivered on strategic actions of the Corporate Plan, in partnership with the community.

He said numerous projects had delivered lifestyle and business benefits across the Region, including: • Stage 7 of the Queens Park Revitalisation Project (the final component of the $15.4 million upgrade project in conjunction with the Queensland Government’s Building our Regions Fund),

• the opening of the Highfields Library, customer service centre and community meeting rooms,

• ongoing construction associated with the $28 million upgrade of the Mt Kynoch Water Treatment Plant,

• the ongoing roll-out of smart water meters (to provide financial savings for residents and Council through the early detection of water leaks),

• opening of the $5.6 million Yarraman Waste Management Facility,

• the completion of the second stage of the Russell Street Refresh Project,

• the Rockville Park Clubhouse Upgrade,

• the start of landfill gas use to partly power the Toowoomba Water Reclamation Facility,

• and the refurbishment of Toowoomba’s State Heritage-listed Soldiers’ Memorial Hall. (This project subsequently won a 2023 Institute of Public Works Engineering Australasia Queensland/Northern Territory (IPWEA-QNT) Excellence Award for Project of the Year in the $2 million to $5 million category.)

For more information and to view a copy of Council’s 2022/23 Annual Report visit http://www.tr.qld.gov.au/ or contact Council on 131 872.

Caption: Toowoomba Regional Council Finance and Business Strategy General Manager Ann-Marie Johnston (left) with TRC Finance and Business Strategy portfolio leader Cr Kerry Shine, Toowoomba Region Mayor and Finance and Business Strategy Committee chair Cr Geoff McDonald and Finance and Business Strategy portfolio leader Cr Edwina Farquhar following the adoption of the 2022/23 Annual Report.