My fellow Councillors, staff, ladies and gentlemen, I am pleased to table Toowoomba Regional Council’s 2025-26 Budget and Operational Plan.

Today’s budget adoption demonstrates belief in our region, belief in our community, belief in each other as your elected Councillors and belief in the Council workforce.

Like you, we love where we live. We love the Toowoomba Region.

Which is why we’ll continue to work with our teams to ensure we’re delivering essential services and maintaining that liveability. The very reasons why we choose to live, learn, work, and play where we do.

This term, Councillors have been committed to doing things differently for better. With that in mind, there’s much to look forward to in this year’s budget. It’s about strengthening our foundations with a clear focus on careful financial management, delivering essential services to our growing communities and maintaining existing infrastructure.

This $705 million financial plan will allow Council to maintain and upgrade existing facilities and provide essential services while planning for a brighter future for current and successive generations.

And with that in mind, today’s Budget is about Council Strengthening our Foundations with few new projects and plenty of essential and mandatory upgrades of existing infrastructure to support our growing communities.

More than ever before, Councils across Australia are being asked to deliver more services with less funding.

The cost-shifting that has occurred towards local government for the past twenty years, according to LGAQ research, shows a 378 percent increase during this time.

No level of government provides so many immediate, critical services as your local council.

That’s why TRC joined the Local Government Association of Queensland’s campaign earlier this year calling for an increase in untied funding for all Councils to at least 1 percent of Commonwealth tax revenue.

For us here in the Toowoomba Region it is a genuine lived experience of funding having decreased over time.

The huge reduction in Financial Assistance Grants (FA Grants) we have received has had a significant impact on our ability to keep our budget in surplus.

FA Grants are used to take the pressure off ratepayers to fund our business-as-usual activities, just like a household wage might help pay for fuel, electricity, rent or mortgage repayments.

In the 2021/22 financial year, TRC received over $19 million in FA Grants. The amount we received this year was just $5.5 million, a $13.5 million decrease.

Despite that, Councillors and the executive leadership team have worked hard to deliver today a Budget with an operating surplus of $1.5 million.

In this Budget, Council has delivered a general rate rise for Toowoomba Urban residential ratepayers of 9.5 per cent. 68 percent of all rateable properties across the Toowoomba Region will receive a general rate rise of less than 10 per cent.

The average Toowoomba Urban residential ratepayer will have an increase of around $241 a year, or $4.60 a week on their general rates with discounts factored in. Keeping in mind changes vary depending on individual circumstances.

It’s important to note, this considered rate increase is on the basis of a strong commitment from this Chamber to look at the way we do business and the services we deliver to the community.

We have factored in $14.75 million of savings in materials, services and operational expenditure in the adoption of today’s Budget.

Increases to the cost of living is having significant impacts on our operations with Council continuing to shoulder many cost increases on behalf of our ratepayers. 

This year we have Budgeted $14.4 million for electricity. That’s $14.4 million just to keep essential services running and the lights on. That’s an increase of $1.9 million from last year or 15.5 per cent.

The story doesn’t get any better for Council’s insurance premiums. Despite not changing our level of coverage, it’ll cost Council $5 million to pay our premiums this year which is a $2.1 million increase, 73 percent higher than last year.

The volatility in fuel prices will also be felt with a whopping $5.7 million forecast in fuel alone to keep Council’s fleet on the road.

Just like households, these are unavoidable expenses for Council that keep rising well beyond inflation each year.

This year, we continue to be burdened with the Queensland State Government’s Waste Levy Bin Tax. This levy covers 39 of Queensland’s 77 local government areas.

Essentially, the State Government is now taxing us for the amount of waste which ends up in our landfills. We have Budgeted $9 million to cover the full cost of the levy, with a gap of $4.2 million to be funded from general rates and commercial gate fees after the State Government’s annual waste levy payment.

This is another prime example of costs increasing which impact our bottom line.

Despite these hurdles, there is plenty to be positive and thankful for. Today’s Budget draws on the combined talents of Council’s Financial Services team in collaboration with all operational areas across Council.

I thank my Council colleagues for their input in developing this Budget which will see Council continue to deliver essential services for our growing Region.

The Budget reflects the priorities outlined in Council’s Operational and Corporate Plans.

Our $705 million operational and capital works program once again delivers projects and services to support our growing communities across the Toowoomba Region.

Council will spend $236 million in this Budget on capital projects.

Projects like continuing the roll-out of smart water meters, upgrading formed and unformed lower order roads, renewing playground equipment in the parks of our regional towns and essential water main and sewer upgrades, are all included in this year’s budget.

We’re spending $469 million on our core Council operations in delivering those essential services to our residents, ensuring waste is collected, parks and gardens are maintained, libraries and recreation facilities remain open and that clean and safe drinking water flows from the taps of homes right across the Region.

Council’s obligation to maintain our existing infrastructure and our ability to manage our $7.1 billion asset base across 13,000km² is a key performance indicator by which we are evaluated by the Queensland Treasury Corporation.

Despite many external demands, Council continues to work in accordance with our long-term financial sustainability parameters to ensure we budget for essential capital works and services that support our communities for the coming year and into the future.

Council’s overall operational and capital expenditure parameters are based on our 10-year Long Term Financial Forecast (LTFF), which adopted by Council, and overseen by the Department of Local Government, the Queensland Treasury Corporation and Queensland Audit Office.

In the coming year, the major areas of operational and capital expenditure will include:

• $263 million for water and wastewater projects (including Cressbrook Dam Safety Improvement Project);
• $160 million for roads, drainage, footpaths and bikeways;
• $122 million for community services, facilities and parks and recreation projects;
• $50 million for waste services;
• $17.5 million for Disaster Recovery Funding Arrangements

We will continue to advocate for our fair share of funding to achieve our community goals and ambitions.

This includes continued advocacy to assist Council to deliver the Cressbrook Dam Safety Improvement Project. We have budgeted a further $96.5 million for works on this mandatory project.

In fact, our water security continues to be a high priority for Council and this year we will enter the second year of a five-year price path for water infrastructure and water usage.

We operate some 8 water treatment plants, 7 waste water treatment plants, more than 2,000 kilometres of water mains, almost 1,400 kilometres of wastewater mains and three dams that all require continued maintenance and renewal to keep taps on and sewage moving. The water infrastructure charge for an average property will increase $83.30 for the year or $1.60 per week with changes to the early payment discounts also factored in.

We have also budgeted $7.2 million for the Four Communities Project which, once complete, will service the four communities of Greenmount, Clifton, Nobby and Cambooya. The project will be vital to the growth and sustainability of these rural areas.

In our Region, Council is committed to working with our local suppliers. We proudly promote our Procurement Policy, which continues to pay dividends.

In the current financial year to May 2025, Council spent $171 million with local suppliers. This puts us just shy our 60 per cent target of our total expenditure year to date, with additional payments to be made in June.

In delivering today’s Budget, I particularly wish to acknowledge and thank:

• All of my Councillor colleagues around the table;
• Council’s former Interim Chief Executive Officer Mr Colin Jensen, current Acting CEO Nick Hauser and the Executive Leadership Team;
• This includes General Manager of Corporate Services, Ann-Marie Johnston;
• Importantly, I’d also like to thank our staff in Financial Services and Customer, Communication and everyone involved in any way in the formulation and communication of today’s Budget adoption.

Your assistance is greatly appreciated.

This Budget is about Council Strengthening our Foundations and working hand-in-glove with the community to chart a path forward for a bright future for our Region.

Thank you.

Watch the Special meeting for the 25/26 budget.

General and water rates adjust yearly. We weigh up many factors in our decision-making around adjusting rates. The following points contribute to the reason rates are adjusted each year:

1. Rising costs: Electricity, insurance, fuel, materials and leasing are all expenses that increase over time and need to be accounted for in the budget. The cost of maintaining roads, parks, libraries and essential services rises over time. For example, our insurance premiums for the 2025/26 financial year have risen 73% compared to 2024/25 original budget.
2. Maintaining infrastructure, facilities and services: The maintenance and improvement of infrastructure, facilities and services is funded heavily by your rates.
3. Population growth: As the population increases, so too does the demand for services such as rubbish collection, community programs and water access.

2025/26 rates increase

The average residential rate increase for Toowoomba Urban residential ratepayers is higher this year compared to last (5% in 2024/25 compared to 9.5% this year), mainly due to consistently rising costs affecting every factor of our operations - from road making materials, construction costs, insurance and electricity. This year’s increase reflects the real cost of delivering essential services and investment in the sustainable growth of our region.

As part of the budget drafting process, we undertook several internal reviews and found significant savings across operations. However, like all households and businesses, some rising costs like materials, services, electricity and insurance are unavoidable. Cutting more deeply would mean reducing or removing essential services that our communities rely on. We believe this rate increase is a more balanced way to keep services running while staying financially responsible.

Behind every service is a team of people, systems, and compliance costs that make it possible. Reducing 'admin' sounds simple, but most back-end costs support frontline services, like payroll, for example. We continually review operations to find savings and improve efficiency.

Cost of living crisis

We recognise that the cost of living is having an impact in our community. We can support you to pay your rates in different ways.

If you are having difficulties paying your bill please speak to our friendly and understanding staff about a payment plan.

Land valuations

Many of our residents will have received a property value rise in their latest land valuation. The change in your valuation doesn’t mean your rates will change by the same amount. We adjust the 'rate in the dollar' down when values go up, to moderate valuation changes.

It’s important to note that we don't set property values as these are independently assessed by the State Government. While we set the overall general rate to pay for essential services, individual rates are levied based on property valuations. In many cases, a change to land values doesn't mean we are collecting more money overall, they simply affect how rates are divided among property owners. A change to your valuation only means your distributed portion of the general rate may have changed.

Read in detail about how land valuation impacts your rates.

We are committed to completing the mandatory Cressbrook Dam Safety Improvement project to widen the dam spillway and have budgeted $96 million in the capital budget for the 2025/26 year. This is funded through our general funding stream. There is no extra charge on your general rate notice, or your water bill, related to the Cressbrook Dam Safety Improvement Project.

This year, we have included a 5 per cent pay-on-time discount on general rates and water rates for all residential ratepayers (including rural residential).

This discount incentives residential ratepayers to pay by the due date. 

We don't have the highest rates in Queensland. In fact, the minimum general rate for Toowoomba Urban residential properties is actually very similar to other similar local government areas.

It’s also worth taking a closer look at what’s included in your rates notice. In the Toowoomba Region, essential services like water supply and sewerage maintenance are managed and delivered directly by us.

It’s also important to remember that larger urban Councils—like Brisbane or the Gold Coast—have much higher population densities, sometimes around 1,000 people per square kilometre, compared to a much smaller population base in a much larger geographical area in the Toowoomba Region. This gives them a broader ratepayer base to share the cost of services, allowing for lower general rates while still collecting more revenue overall. 

We provide a wide range of services and infrastructure, from roads, waste collection, wastewater and water services to libraries, parks, pools, animal management, economic development, planning and environment and community programs. Some costs are visible, like new footpaths and park upgrades. Others, like maintaining critical infrastructure, planning, and service administration and advocacy are less obvious but just as important.

Even if you don’t regularly use facilities like pools or libraries, your rates go toward shared services that benefit the entire region, like rural roads, bushfire and disaster preparedness, animal control, waste facilities and pest management. While you may not personally use every service or facility supported by your rates, we are committed to making these services available for everyone in the community. They’re here when you need them, whether that’s today, tomorrow, or sometime in the future.

We work hard to make sure funding goes where it’s needed most. Factors like safety, risk, the laws that must be followed, long-term planning, and how much benefit a project brings to the community are considered. Essential services; roads, water, wastewater, waste and safety - always come first. After that, the focus is on projects that help our community grow, improve liveability and support the local economy. Projects are also ranked based on how much money there is available. This informs the choice about what can be done in the coming year. When it comes to day-to-day services, things are grouped into five types:

• essential: must-do, legally required e.g. water infrastructure, road, transport, parks, libraries, events, internal operations and regulatory responsibilities.
• core: basic services
• community: things that help people connect
• corporate: internal support services
• discretionary: extras we fund when possible.

The aim is to strike a balance between service levels, cost and risk to get the best results for the community with the money that is available.

We know road maintenance is a top priority for many residents, and we’re continually working to improve our road network. Grading schedules are based on several factors including traffic volumes, safety, weather impacts, and available funding. We have a detailed capital works and maintenance program that outlines planned upgrades and routine grading across the region. You can view the full proposed 2025/26 expenditure on capital works on our website.

Each year, our financial staff prepare a Budget that balances the community’s needs, infrastructure priorities and available funding. It’s shaped by strategic planning, service reviews, and legislation, all with consideration to rising costs and available revenue.

Staff use important planning documents to help shape the budget. This includes the corporate plan (our big-picture goals), the operational plan (what we’re doing this year) and various other working plans.

To plan how much money we need and where it’s going to come from, we consider a variety of factors, like how much services cost, the level of service required, any risks or legal requirements, what grant funding is available and the overall economy. Before we consider raising rates or charges, grants, contributions or other means of raising revenue are considered.

Budget planning usually kicks off in October, the previous year. During this time, managers and coordinators work on their area’s Budget, and the Finance team brings everything together. This draft Budget then goes to the leadership team, Councillors and the Mayor for briefing and feedback – this process can take up to 9 months as changes are incorporated. Once all of the feedback has been considered and the draft Budget has been fully compiled, it goes to the elected members one final time for voting and adoption. At this meeting the elected members can implement their final amendments. 

We are monitored through strict financial oversight to ensure our Budget is fair, transparent and sustainable. This involves:

• Legislation and regulations: we must follow laws including the Local Government Act, which requires us to prepare annual budgets, financial reports, and long-term financial plans.
• Independent audits: Government auditors assess whether we are managing finances effectively and complying with regulations. We also report against financial sustainability ratios.
• Public accountability: We publish our Annual Report detailing our financial performance, allowing residents to see how funds are spent. Community consultation is also required for strategic planning.
• Audit panels and oversight bodies: Independent audit panels review our finances, risk management, and governance practices to ensure responsible spending.
• State Government monitoring: Departments like the Queensland Audit Office assess whether we're planning and delivering services sustainably. 

You may have seen information about the Budget advertised in traditional media like newspapers, radio and on social media. This allows us to fulfil our duty to keep our residents informed to ensure transparency, accountability and community engagement. Our residents have the right to know how the Budget is levied, where funds are allocated and how their money is spent.

We don't fund schools, hospitals, police, national parks or main roads as these are State or Federal Government responsibilities. We focus on local infrastructure and services that support the liveability and functionality of our region.