The Local Government Association of Queensland has confirmed it expects council costs to rise by an estimated 3.3 per cent over the 2013-14 financial year.

The LGAQ released a financial Council Cost Index report, confirming that it the costs of road building and park maintenance are expected to drive the projected increase.

LGAW President, Margaret de Wit, urged councils to factor in the findings of the report when considering their rating decisions for the coming year.

“The Council Cost Index factors in things like the costs of road building and bridge construction which are not reflected in the CPI measurements of inflation,” Cr de Wit said.

“We believe the index will help councils cover the real costs of serving and providing for their communities.”

Cr de Wit said the Queensland Treasury Corporation had told councils several years ago to be careful about limiting their rate rises to the CPI because the general inflation rate was not necessarily a reflection of the true costs of delivering services.

“The challenge for councils is to realise that providing for the increased expectations of their communities will come at increased cost, and that cost needs to be covered,” Cr de Wit said.

The full report can be found here