RATES have jumped by up to 30 per cent since Queensland's controversial council amalgamations, defying promises of cost savings.
And debt has leapt to record levels, with struggling councils approaching their maximum credit limit three years after the State Government pushed through its controversial council reforms against widespread community opposition.
While some mayors said benefits had emerged, ratepayers have complained skyrocketing rates and fees, mounting debt and staff blowouts paint a different picture.
It comes amid a war of words over whether the Bligh Government's plans to dismantle the southeast's water distribution system will cap steep water price rises.
Natural Resources Minister Stephen Robertson said establishing the retailers had cost $80 million, and he did not believe it would be as expensive to dissemble.
But councils estimate scrapping the three retailers and returning water to councils could cost at least $300 million.
Councils have reached borrowing limits, with loan repayments expected to chew-up about 30 per cent of their revenue. Council debt will have tripled from $2 billion to $6 billion by June next year, hitting $8.5 billion by 2014.
Financial documents for a dozen merged councils show they have become mired in debt since the amalgamation, with an average debt per capita of $1153. Borrowings by the 12 merged councils rose from about $880 million before the amalgamations to $1.7 billion this financial year.
Townsville City Council loans soared by more than $200 million since 2008 to $390 million - more than $2000 of debt per person.
Local Government Association of Queensland executive director Greg Hallam said councils would soon be forced to stop borrowing and ration spending as they grew close to reaching their credit limits. He blamed population growth and the need to upgrade infrastructure in areas neglected by councils over past decades for driving up debt.
Council rates comparison P10-11
GROWING PAINS
Rate rises of up to 30% since mergers
Water bills jumped up to 40% in one year in southeast
Council debt tripled in four years - to hit $6 billion by 2012
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