Toowoomba Region Mayor Geoff McDonald and Deputy Mayor Cr Rebecca Vonhoff last week stepped up the call for external funding for the $270 million Cressbrook Dam Safety Improvement Project.
Mayor McDonald was busy last week in Brisbane attending events alongside federal and state government ministers and senior public servants.
Council has already applied for a Disaster Ready Fund grant through the Queensland Reconstruction Authority.
“While Council previously has relayed the importance of this project to the higher levels of government, I am determined to highlight how critical external funding remains to supporting this work, which was mandated by the State Government,” Mayor McDonald said.
“Council will take every opportunity to impress on the state and federal government how crucial external funding is to ensure the full cost burden is not passed to ratepayers.”
Without grant funding, Council’s submission to the State Government said the full cost of the dam wall upgrade will be transferred to ratepayers through increased water charges.
It is estimated the average annual residential water bill could grow by $600 by 2029, from $1,115 to $1,710.
“While increases in construction costs over the past three years and increases in interest rates are playing their part, approximately $250 of this increase is due to the cost associated with this project,” the submission said.
Mayor McDonald said that without grant support, there is no option other than through debt funding from the Queensland Treasury Corporation.
“This scenario would take Council to its maximum borrowing capacity and negatively affect our financial sustainability,” he said.
“We would much prefer to avoid this situation which would also reduce Council’s ability to withstand other financial disruptions.
“Despite all our careful financial planning, Council cannot carry the full cost of the Cressbrook Dam project single-handedly without also deferring planning and delivery of other major projects and potentially a review into the range and levels of essential local government services that are required to support a growing Region.
“This underlines why securing government grants for the largest capital project undertaken by Council is our highest Budget priority.”
Mayor McDonald said Council was progressing with work on the business case which is scheduled to be presented to the State Government in mid to late June.
He said project construction work was expected to start in the second half of the year.
Council is partnering with SMEC and Seymour Whyte to complete construction by its required completion date of October 2025.
The Cressbrook Dam Safety Improvement Project will widen the dam spillway to increase flood resilience and protect landholders downstream in the Somerset Region.
This article appeared in On Our Selection News, 18 April 2024.
