Record Infrastructure Budget
05 July, 2008
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LORD Mayor Campbell Newman has announced record infrastructure spending – most of it on roads and transport – to get Brisbane moving and ease traffic congestion.
His $2.66 billion budget contains a record $917 million for capital works projects, of which more than half ($480 million) is for roads and transport infrastructure.
The $917 million in capital works is almost $200 million more than last year’s record capital works spend. The $480 million for the Lord Mayor’s flagship Moving Brisbane program area is also up $200 million on last year’s record spend.
The budget’s centrepiece is a $1.2 billion Road Action! plan that targets Brisbane’s worst suburban congestion hotspots for major improvements over the next four years.
It includes upgrades of three of Brisbane’s worst railway level crossing bottlenecks – at Wynnum, Geebung and Bald Hills – for about $306 million, with State assistance.
“This is a no-nonsense budget that sets the platform for the next four years,” Cr Newman said.
“We were elected to address traffic congestion and we are delivering with serious money for suburban road projects, and a renewed focus on communities. Make no mistake – these projects must be done now or they will only cost more later.”
The budget builds on the Lord Mayor’s strong environmental platform with a record $150 million for the CitySmart program, which aims to reduce citywide carbon emissions through tree planting and education campaigns.
The Lord Mayor will purchase and protect from development about 500 hectares of bushland this term due to a $12 increase in the Bushland Acquisition Levy.
Ratepayers will be offered free installation of Smart Meter electricity-use monitors in their homes, in conjunction with the State Government’s Climate Smart scheme.
There is another $400 for households who buy solar hot water systems, or convert existing systems to solar. E-waste collections will be increased to four times a year.
The Lord Mayor has launched a $5.7 million Neighbourhood Plus! program of increased grass cutting and street sweeping in the suburbs.
The number of graffiti removal teams has been increased from 7-10 – up from just four when Campbell Newman was elected. This represents a $350 thousand boost, increasing total spend to $1.5 million per annum.
“Neighbourhood Plus! is all about lifting council’s game and doing things better than ever before,” Cr Newman said.
“It is about having pride and taking greater care of the communities in which we live. This is part of my plan to see suburbs sparkle.”
Council will also target graffiti artists by hiring off-duty police officers to pursue and gather evidence against them for prosecution, at a cost of $6 million over four years.
The budget introduces a new ratings scheme for units (Community Title Schemes) – ending years of inequity under the old scheme where wealthy unit owners paid less.
The scheme will affect unit owners whose buildings are on land worth more than $1 million. It will address a longstanding problem that saw luxury CBD highrise unit owners pay less rates than battlers in Inala, or those in modest suburban six-packs.
“I don’t believe that wealthy people in luxurious CBD highrise units should be paying less rates than battlers in Inala,” the Lord Mayor said.
Brisbane will be debt-free for the first time in this budget, with net debt per capita plummeting from $567 at present to zero dollars in the upcoming financial year.
City infrastructure reserves are at a record high of $356 million – up from $155 million last year, and $88 million in 2006-07.
Average net rates and charges for owner-occupiers were to increase by 6.4 per cent in this budget - an increase of just 3.15 per cent above inflation.
However the State Government’s surprise bulk water price hike of 30 cents a kilolitre drove up the average net rates increase to 8.76 per cent for owner-occupiers.
“Council increased water by just 3 to 6 cents a kilolitre but the State Government’s decision to add another 30 cents on top is a blow to ratepayers,” the Lord Mayor said.
Cr Newman has capped rates increases for owner-occupiers who live in their properties so they do not face more than a 10 per cent increase.
The Mixed Residential ratepayers (investment unit owners) – face the most significant rates increase of 13.4 per cent – however that increase is driven by the high-end market who were paying minimal rates before the CTS changes to rates.
The BCC’s proposed net rates increases for each category appears below. (The figure in brackets is the real rates increase after the State Government’s water price hike).
• Residential Owner Occupier 6.4% (8.76 %)
• Mixed Residential 11.19% (13.45%)
• Non Residential 7.88% (10.42%)
• Rural 6.56% (12.05%)
• Central Business District 7.35% (8.21%)
• Multi Residential 5.05% (7.42%)