Job cuts are on the horizon for Gympie Regional Council as it works to reduce costs and claw back a $3.45 million deficit.
The council has tightened the belt on spending, ruling out upgrades to the Gympie Library and Transit Centre as part of its "back to basics" $142 million budget for this financial year.
Mayor Glen Hartwig said sewerage works on Gympie's southside had also been postponed to future budgets.
"There was a lot of stuff in the pipeline that council had to determine what was necessary and what wasn't," Cr Hartwig said.
"Instead of being focused on beautification, we're focused on roads, rates and rubbish."
Staff a 'little bit concerned'
Cr Hartwig said a staff restructure would be tough but necessary to return to surplus by 2021.
"The ratio of indoor staff compared to outdoor staff is well out of kilter with other local government agencies," he said.
"Part of that, I think, will be a reduction in a number of staff, particularly upper and middle management."
Cr Hartwig said council's workforce was "bloated" in certain areas and some changes were needed.
"Staff are probably a little bit concerned, and justifiably so," he said.
Residential rates in Gympie will rise by 3 per cent, however rural ratepayers have been offered some relief with no rates increase.
"Some farmers had a 50 per cent increase last year alone on top of a 20 or 30 per cent rise the year before," Cr Hartwig said.
"Primary producers had been targeted for two years on the trot … that is why we decided to go for a zero rate rise for that category."
