Future building Redlands Coast involves fiscal fairness across generations
Redland City Council’s strong financial position and sound credit rating has enabled it to consider a variety of long-term funding options to deliver new infrastructure.
Prudent and equitable investment in assets on Redlands Coast is allowing Council to bring forward plans for new infrastructure and provide the community with assets and services in an equitable manner.
While Council strives to keep borrowings as low as possible, certain projects are financed through borrowings to ensure costs of long-life assets are distributed equitably to those who benefit from those assets, now and into the future.
It effectively means that future generations of ratepayers who will directly benefit from the Council-owned infrastructure – contribute to the cost of its creation, rather than this burden falling solely on current ratepayers at the time of the infrastructure’s purchase or construction.
A Council spokesperson said responsible financial stewardship has resulted in Council having low levels of debt on its balance sheet and that it was sensible to use debt in this way.
“This is how we ensure future generations share the costs of infrastructure that will benefit them,” the spokesperson said.
“It is a form of ‘fiscal fairness’ and another way in which Council is working to maintain its strong financial position.
“This year’s Budget engagement sessions held with Councillors have been extensive to ensure the organisation is as fiscally efficient as possible, while continuing to deliver the multitude of high-standard services and facilities that keep this city ticking.”
The annual investment by Council in infrastructure is substantial and represents a major component of the budget.
As an example, the largest single commitment in last year’s $430 million Budget was $40.5 million – almost a tenth of the entire Budget – for continued works on the Wellington Street / Panorama Drive road duplication project at Thornlands.
Further infrastructure investment came in at $33.85 million which included progressing intergenerational projects as outlined in Our Future Redlands – A Corporate Plan to 2026 and Beyond.
Part of these funds went towards works at the Weinam Creek hub at Redland Bay and for specific projects such as the Willards Farm restoration works at Birkdale Community Precinct.
These two precincts are defining catalyst projects for the city that Council has committed to, and which will bring significant benefits to the Redlands Coast community well into the future.
Council’s Financial Strategy 2023-2033, its framework for financial sustainability, outlines that key intergenerational infrastructure should be financed in a way “which allows any significant financial burden to be spread over a number of years and not impact adversely on current or future ratepayers”.
Council is currently in the process of finalising its capital works program for the 2024-25 financial year, in preparation for Council’s Special Budget Meeting on Thursday 27 June 2024.
Redland City Council provides a suite of services to 166,873 residents and more than 63,000 residential households across Redlands Coast. Our naturally wonderful city on Quandamooka Country is home to more than 335 kilometres of coastline, six island communities and 12 mainland suburbs.
