Lake Macquarie City Council has unveiled its $394.9 million budget for the 2024-25 financial year, with a looming fire services bill set to impact future finances. The budget, adopted at a council meeting on Tuesday night, prioritizes infrastructure upgrades, community facilities, and environmental initiatives while acknowledging the financial pressure from rising emergency services costs.
Key Budget Highlights
The council’s spending plan includes $123.2 million for capital works, focusing on roads, footpaths, and drainage improvements. A further $45.6 million has been allocated to parks, playgrounds, and sporting fields, with $28.3 million dedicated to water and sewerage infrastructure. The budget also sets aside $16.8 million for environmental programs, including bushfire recovery and coastal management.
Fire Services Levy Impact
A significant concern for the council is the increasing cost of the fire services levy, which is expected to rise by 8.5% to $11.2 million in the coming year. The levy, passed on to property owners, has been a point of contention, with councilors warning that further increases could strain household budgets. The council is advocating for state government reform of the levy system.
Mayor Kay Fraser said the budget strikes a balance between managing cost-of-living pressures and delivering essential services. “We are focused on keeping rates as low as possible while investing in the infrastructure our community needs,” she said. The average residential rates increase is capped at 3.5%, in line with the rate peg set by the Independent Pricing and Regulatory Tribunal.
Community and Environmental Spending
Major projects include the completion of the Warners Bay Foreshore upgrade, the construction of a new library at Cameron Park, and the expansion of the Lake Macquarie Regional Livestream service. Environmental initiatives include $2.5 million for koala habitat restoration and $1.8 million for wetland rehabilitation.
The council also plans to spend $6.2 million on road resealing and $4.1 million on footpath construction. A further $3.7 million will go towards stormwater drainage upgrades to mitigate flooding risks.
Financial Challenges Ahead
Despite the focus on infrastructure, the council faces ongoing financial challenges, including rising insurance costs and the need to fund employee entitlements. The budget includes a $2.5 million provision for the fire services levy increase, with councilors expressing concern that future hikes could force cuts to services.
Councilor Jason Pauling said the budget was “responsible” but warned that the state government needed to address the fire levy issue. “We cannot keep passing on these increases to ratepayers,” he said. “We need a fairer system that doesn’t penalize local councils.”
The budget also includes a $1.2 million surplus, which will be directed to a reserve fund for future capital projects. Council staff will now begin implementing the budget, with quarterly reviews to monitor spending and revenue.
