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Bass Coast spends up

22/4/2021

4 Comments

 
PictureThe council is borrowing $10 million for the Cowes Cultural Centre. Illustration: Perkins Architects
By Catherine Watson

BASS Coast Shire Council is making the most of record low interest rates to borrow for intergenerational major projects.

​Spending on the Cowes Cultural Centre headlines a record $35 million capital works program in its draft 2021-22 budget.

The budget allocates $12.2 million in the coming financial year for the $19 million project, a centrepiece of the council’s post COVID-19 economic recovery plan.​

The State Government has also allocated $2.5 million  through its Growing Suburbs Fund, and announced a further $800,000 grant towards the Phillip Island library last week.
​

Councillors voted at Wednesday’s council meeting to adopt the proposed budget and release it for community feedback.
Moving the motion, Cr Michael Whelan said $10 million of loans from the State Government at a very favourable interest rate made the cultural centre project very attractive and last week’s announcement of a $800,000 grant towards the Phillip Island library made the equation even sweeter.
 
Other big ticket items include $2.5 million for the Cowes East foreshore rock revetment wall and beach access, $1.1 million for the Grantville boat ramp, jetty and seawall renewal and $1 million for the Rhyll Boat Ramp and Jetty.
 
With interest rates at an all-time low, the council plans to use its reserve balances and borrowing capacity for major intergenerational capital projects over the coming years.

​A report from the chief financial officer, David Filmalter, noted: “While the Proposed Budget reflects increased Council borrowings, this is tied to the major capital investment program and the level of debt is still expected to remain within prudential guidelines (indebtedness ratio less than 60%).

"Council is also planning to reduce its discretionary reserves over the four year period to support the expansionary capital program that it has developed.”

A rate cap increase of 1.5 per cent has been maintained as mandated by the State Government.

The farmers rating differential of 80 per cent has been retained and farmers can apply for the Rural Land Management Program, which returns approximately $653,000 to the rural community for land management.
​The Figures
The budget projects total expenditure of $104 million and a record capital works program of $35.8 million
 
Expenditure
Operations - $66.4 million
Capital Works - $35.8 million
Debt Servicing - $1.8 million
 
Income
Rates and Charges - $67.2 million
Grants and Subsidies - $15 million
Borrowings - $10.3 million
Fees and Charges - $7.2 million
Transfers from Reserves - $1.6 million
Contributions - $900,000
Asset Sales - $700,000
Interest - $600,000
Other Revenue - $600,000

Capital items
  • Commencement of Cowes Cultural and Community Centre construction - $12.2 million
  • Grantville boat ramp, jetty and seawall renewal - $1.1 million
  • Rhyll Boat Ramp and Jetty - $1 million
  • Cowes East foreshore rock revetment wall and beach access - $2.5 million
  • Wonthaggi Activity Centre Plan - $250,000
  • Marine structure designs for Inverloch East and Kilcunda - $550,000
  • Inverloch Community Hub renewal - $250,000

The budget also includes funding for projects to support Bass Coast’s climate action plan and a Settlement and Housing Strategy, which will position the council to leverage the State Government for funding for affordable housing.
​
Cr David Rooks welcomed the allocation of $150,000 to develop a shire-wide tracks and trails strategy and $200,000 for a settlement and housing strategy that will look at the township boundaries and the supply of houses and development land within the boundaries.
 
Cr Bruce Kent welcomed $50,000 for a review of local laws which he said would address issues of concern within the community, possibly including private wind turbines which have been an issue at Surf Beach.   
 
The draft budget was passed by seven councillors to one against. The sole vote against was from Cr Les Larke who has a long-standing objection to the council’s accounting methods and said he could not support the budget in its current form.

Bass Coast Mayor Brett Tessari encouraged residents and ratepayers to provide feedback.

​The budget can be downloaded from www.basscoast.vic.gov.au/budget. Submissions can be made online until May 20. Submitters may also choose to present their submission to the council on May 26. A Facebook Q&A forum on the budget will be held from 6-7.30pm on Wednesday, May 5 at www.facebook.com/basscoastshire.
4 Comments
Frank W Schooneveldt
23/4/2021 11:29:04 am

Thank you for the update Catherine.
I am so glad to read that our Council is finally borrowing some money.
This is long overdue but is a step in the right direction.
Our council should be judged on its infrastructure spending rather than its operating budget, The focus needs to be on the infrastructure backlog in the Shire.
I would be more than comfortable for the Council to increase its debt to equity ratio to 40% and use these additional funds to fix the infrastructure backlog.
Cheers. .

Reply
sunny
25/4/2021 04:09:25 pm

What about public housing, be nice if the council bought some houses for affordable accomodation, rent rises have been outrageous, I myself might be homeless in 6 months because I have to vacate the house which was sold to an investor you will do it up, possibly another airbnb? We need restrictions on how many airbnb's there are allowed because so many permanent rentals are getting taken over leaving no much options for long term residents to stay in the area.

Reply
Frank W Schooneveldt
26/4/2021 09:43:18 am

I just heard on the ABC news that rents in Wonthaggi have gone up 18% in the past year.
I agree that we all need to put pressure on our Council to provide affordable housing to those people who need it. Sunny you need to make a budget submission.
Cheers

Reply
Craig
9/11/2022 10:42:52 pm

There are so many investors and developers want to invest into and construct housing to make it available to the rental markets in Wonthaggi and surrounds however the planning departments in Wonthaggi are in an absolute mess and totally dysfunctional. Thisecwanting to invest and construct just give up in the end. It's not helping




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