Budget 2023: Shire drops $30.5M debt bomb

HOMEOWNERS in Bass Coast will contribute more than $47 million in rates in the coming financial year, up $2.4 million on the previous year, or an additional 5.3 per cent more.

That’s despite council publishing a headline rate increase of 3.5%, the full rate cap offered by the State Government, ahead of this Wednesday’s council meeting which will feature a motion to approve the release of the draft $105.9 million budget.

And while the draft budget contains a capital works program of $29.4 million for the next financial year, buried deep in the budget are details of the shire’s debt levels ballooning out to $30.5 million by 2024-25, despite a council proposal to accelerate its debt reduction through the early repayment of $3.7 million of its $11.7 million interim loan facility in June 2023.

“This will be funded through its discretionary reserves and will support ongoing financial efficiency savings of $40,000 per annum,” explained council in its budget papers.

However, while council is planning to pay back $3.7 million, it proposes to raise another $4.57 million in new borrowings to fund its capital works program of $2.37 million and $2.2 million to fund the deferred Cowes Public Realm Improvements project, that will be delivered following the completion of the Cowes Cultural and Community Centre.

One cost, however, that is not detailed in the annual budget is the cost of the new cultural centre project, officially $27.2 million, but believed to have blown out by as much as $10 million if all costs associated with the project, such as public art, are included.

Sources within the council tell us that the actual cost of the Cowes Cultural and Community Centre will not be revealed until the shire’s annual report of 2024 is published.

The reason why revenue from household rates is going up by 5.3%, at a time when domestic power costs were up by 36% last year, with a similar rise to follow this year, is partly because the shire has added an additional 312 new residential properties to the rate base, and there’s also been a relative increase in the value of residential land overall.

As a result, the shire’s 28,509 residential property owners are shouldering the bulk of the burden to be collected from rates, $47m of the $56.8 million to be collected overall while farm and commercial rates are going up by an average of 3.7%.

A total of 994 farm owners will contribute $3m to rates in 2023-24, an average of $3064 per rural ratepayer.

2023/24 Budget Highlights

• $15.2 million to improve Bass Coast’s road and path network, including: Berrys Beach Road, Ventnor $1.1m, Wonthaggi-Inverloch Overland Trail $500,000 and Corinella Pathway $300,000
• $4.0 million on Climate Change Actions, including Protecting our Natural Environment $2.3m, Building Energy Upgrades $100,000.
• $16.1 million on our Waste Services, including Waste Services $14.7m,  Landfill Rehabilitation $600,000.
• $13.4 million on our Leisure and Recreational facilities, including Art Centre Services at WUCAC and Cowes Cultural and Community Centre, $2.2m Playground works $900,000, Kilcunda Bass Football Club Pavilion $500,000.
• $13.5 million to upgrade community facilities, including Cowes Activity Centre Plan $700,000,  Replacement of various toilet facilities and $700,000 Inverloch Hub works $600,000.
• Develop and maintain a Significant Tree Register to protect distinctive trees integral to the environment, culture and heritage of Bass Coast.
• Deliver a dynamic arts program at WUCAC and Cowes Cultural and Community Centre including the 'Opening' of the new venue.
• Develop a Mountain Bike/BMX/Pump Strategy to guide the development of tracks in Bass Coast.
• Implement 24/7 cat containment including community engagement, regulation and enforcement plans.
• Develop guiding principles for the requirements of inland dog off leash areas.
• Advocate for kindergarten expansion in Bass Coast to cater for expanding population. Strategic Objective 3: Our Places
• Finish construction of the Cowes Cultural and Community Centre
• Develop detailed design for the Wonthaggi Streetscapes Master Plan
• Develop detailed designs for the Cowes Streetscapes Master Plan
• Adopt and implement the Wonthaggi North East Precinct Structure Plan
• Commence the development of a Town Plan for San Remo including Structure Plan and Town Centre guidelines.
• Develop a Public Art Plan to provide a clear outline of the Council’s approach to public art in the municipality.
• Complete the Woolamai to Nyora rail trail feasibility assessment.
• Finalise design for Surf Parade Shared Path stage 3B.
• Adopt and implement the Economic Development Framework.
• Develop the Farmer Resilience Program, focusing on commercial and business sustainability and mental health.
• Implement a strategic approach to event acquisition including international events, whilst strengthening local events to support economic growth.
• Continue development of the Bass Coast Industrial Land Strategy.
• Finalise the Housing Strategy and Neighbourhood Character Study.
• Develop an Integrated Transport Strategy to support coordinated and linked transport modes across Bass Coast.
• Implement the Communications and Engagement Strategy and Plan including the establishment of a regular e-newsletter.
• Support implementation of the Climate Change Action Plan through the delivery of Electric Vehicle (EV) charging infrastructure and the purchase of EV for Council’s fleet.