The 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.
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.
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
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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.
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.