Wastewater infrastructure spending fails to keep up with needs

“We have some difficult decisions and challenging financial decisions ahead of us to ensure our water assets are protected.”

Calling for City Water’s profits to be plowed directly back into the business rather than filtered through the council, Boglary said the review would highlight where the most urgent work was needed.

“City Water is making a profit and I think it should be used for City Water. That’s why it was increased to cover the costs,” he said.

According to City Water’s report last year, the company’s after-tax profit in 2023-24 was $8.7 million. The previous year, it recorded a loss of $15 million. It grossed $20 million in 2020/21.

The average amount budgeted for wastewater infrastructure maintenance over the past 10 years was roughly $12.5 million, but this has increased recently; A budget of 28 million dollars was allocated this year, and 20 million dollars the previous year.

A council spokesman did not respond directly when asked whether a $35 million annual spend would be required to meet projected needs but acknowledged the system was under pressure.

“Much of Redlands Beach’s water and wastewater infrastructure was first put into service in the 1970s-1980s, and with the high population growth in the city over the last decade, some of this infrastructure has now reached the age of replacement or replacement or is in need of expansion,” a spokesperson said.

“This isn’t just unique to Redland City.”

The spokesman said the review was a proactive step to prevent problems the system could face, adding that the council had not received enough money from developers to meet its infrastructure needs.

The spokesman called on the government to increase the cap on how much councils can get from large developers, saying: “The current cap is well below the actual costs of the service.”

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