Some opposition, but shire’s budget gets through

A SUBSTANTIAL $102.9m budget was adopted by Bass Coast Shire Council at last Wednesday’s meeting, including a $29m capital works program.

The size of the budget expanded from an already whopping $101.8m in the draft budget document.

That discrepancy factors in the adoption of further spending following public submissions on the draft version of the budget.

Additional spending initiatives include:

* The allocation of funding towards the Blue Gum Community Garden ($278,000) 
* Rhyll Playground ($270,000)
* Refurbishment of the CFA building in Cowes ($185,000) 
* Cowes Recreation masterplan ($80,000) 
* ‘For Our Future’ Arts Collaboration ($50,000)  
* Corinella Bowls Club disability access toilet design ($30,000)
* Crown Land Strategic Review ($30,000)

The $29m capital works program will be funded by capital grants of $5.9m, borrowings of $5.3m, and the remainder from council cash.
Rate increases have been contained to 1.75 percent in line with the mandated state government rate cap.

Total rates and charges are $69.8m, with rate revenue expected to be $54.2m.

The Budget for 2022/23 provides for total operating income of $93.7 million and total operating expenditure of $91.5 million, a budgeted surplus of $2.2 million, with an underlying deficit of $3.4 million.

Project highlights in the budget include:
* $14.4m to improve Bass Coast Shire’s road and path network
* 12.5m to deliver new leisure and recreational facilities including completing construction of the new Cowes Cultural and Community Centre ($2.8m) and surrounding public realm improvements ($2.2m)
* $5.2m on climate change actions
* $12.1m to renew and upgrade community facilities, including Wonthaggi Activity Centre Plan priorities ($3m)
* $18.8m for Waste Services, including waste services ($12.4m), landfill rehabilitation ($4.1m), and micro turbines ($1.6m)

The Budget also features a rating differential of 80 percent for agriculture, something that won praise from Cr Rochelle Halstead.

According to the Budget, council will use an additional $14.9m in new borrowings to fund the capital program and refinance $11.7m in loans already held on June 30, 2022, increasing total borrowings to $30.8m as of June 30, 2023.
 

Cr Les Larke outlined his concerns with the level of borrowings needed to fund capital expenditure projects.

“My proposition has always been to streamline operations to ensure the trend of consistent operating surpluses, thus maximising internal funds available for capital expenditure projects and minimising the need to borrow, to the extent possible,” Cr Larke said.
“Our borrowings blow out because we are not achieving consistent operating surpluses.”

Cr Larke said that while not opposed to all borrowing, he is worried about council’s significant and accumulated ongoing deficits.

“Accordingly, notwithstanding the positives of this budget, I will not support the budget due to council not streamlining operations to the extent required to ensure significant availability of internal funds for capital expenditure projects and thus substantially increasing borrowings unnecessarily,” he said.

Like Cr Larke, Cr Ron Bauer expressed misgivings about the budget.

Cr Bauer called for a return to basics and prudent economics and a reduction in reliance on external parties.

“We must reassess and reduce our ambitious program and look at the reliance of external consultants,” he said.
 “We employ highly qualified and competent staff who can produce the required outcomes.”

Cr Tessari pointed to the irony of some councillors suggesting a reduction in projects may be required, saying all councillors played a part in putting forward projects they believe are important and all helped set the budget.
Councillors Bauer and Larke were the only ones to vote against the adoption of the new budget.