By SONJA KOREMANS
RATEPAYERS may be hit with a tax to protect the council’s already grim balance sheet from another multi-million flood blowout.
Southern Downs Regional Council (SDRC) mayor Peter Blundell revealed to Southern Free Times that an emergency management levy could be placed on all ratepayers after the July budget.
“Ratepayers will be responsible for much more of the cost associated with disaster events in the future,” Mr Blundell said.
The council which is more than $30 million in the red, was forced to write off $600,000 debt this month after it was left $7.2 million out of pocket for unbudgted flood repairs in 2011 and 2013.
The two floods had a $61 million repair bill with $54 million refunded to the SDRC by the Queensland Reconstruction Authority.
At the SDRC’s monthly meeting in Stanthorpe this month, a recommendation was carried forward to write off the outstanding flood debt.
But Mayor Peter Blundell said a permanent solution had to be found to sustain its works budgets.
An emergency management levy is among long-term revenue raising options being considered in the July budget, he said.
“Current discussions indicate a levy that could be placed on all rate payers, and would allow money to be directed to all forms of disaster related payments, for instance flood, fire, or landslide. This suggested levy arises from significant changes to the assessment process for disaster relief payments, which means councils and therefore ratepayers, will be responsible for much more of the cost associated with disaster events in the future,” Mr Blundell said.
Tighter Federal Government funding has stripped the SDRC of its natural disaster safety net, with council will no longer able to access federal assistance to repair facilities such as playgrounds, sporting fields and parks. Emergency work to protect commercial, industrial and retail buildings won’t be funded either.
“There are some real concerns around future natural disasters, the fact that repairs to community recreation areas and facilities will no longer receive federal funding is a huge concern for us because we have a lot of recreational facilities in the flood plane,” Mr Blundell said.
“Under revised arrangements in the future, the facilities would either not be replaced, or would be replaced at council’s expense.
“So we need to look at the revenue side as well as the expense side and a levy will form a mix of what we talk about when we are trying to balance the budget.“
Mr Blundell would not be drawn on the annual cost to taxpayers if the levy was introduced.
The Local Government Association of Queensland (LGAQ) said other Queensland councils have travelled a similar path with Lockyer Valley adopting a flood levy, and the Whitsunday Council introducing a major projects levy to fund reconstruction not covered by government assistance.
“A differential rating can be used in Queensland so that councils can adjust levy rates so that they are flexible. Someone who is not in a flood zone may pay less than a ratepayer who lives near a river.” an LGAC spokesman said.
Southern Downs councillor Vic Pennisi said he would support the introduction of a levy.
“To do nothing is not the answer,” Mr Pennisi said.
“As a suggestion, we have 18,000 ratepayers in the region, if each paid $100 a year on the levy, council is putting away $1.8 million.
Eventually, there will be a bit of money there to subsidise the ongoing costs, which is good planning into the future, he said.
Mr Vic Pennisi said the levy discussion was in embryonic stages.
“Maybe, having a reserve isn’t the right answer, but we need to have that discussion.”
