By Casey Neill
Debt was in the spotlight as Greater Dandenong Council adopted its proposed 2017-18 budget.
Councillor Tim Dark told the Monday 8 May meeting that the council’s debt was equivalent to $380 per resident.
“Eventually somebody has to pay this debt back,” he said.
“I believe we have to take an aggressive approach to paying down debt.”
Corporate services director Mick Jaensch said council debt was $54.9 million at June this year, which he described as significant.
But he said community benefit was being derived from the loans, which funded work at the Noble Park Aquatic Centre, Dandenong Market, and the Dandenong Civic Centre.
He said these facilities were “intensely used by the broader community” and added value to living in Greater Dandenong.
He said other councils might not have borrowed as heavily, but they also hadn’t provided such facilities.
Mr Jaensch said the council was not allowed to have a debt level higher than 80 per cent of its rate income.
He likened it to someone with a $100,000 income only being allowed to borrow $80,000.
He said the council’s debt was at 43.5 per cent of its rate income, and would drop below 40 per cent next financial year.
Mr Jaensch said debt funding had the benefit of matching who paid for the facility – current ratepayers – with who was deriving benefit from it, rather than one generation paying for something the following generation would enjoy.
He said the council’s proposed capital works plan would cost $42.6 million to deliver.
He said $6.9 million (including $1.77 million from the state and federal governments) to complete the $16 million Tatterson Park pavilion project in Keysborough was a key budget feature.
“When finished it will be a flagship sporting facility for this council,” he said.
Mr Jaensch also highlighted $6.45 million to finish the Springvale Town Hall refurbishment and for detailed design work on the civic centre redevelopment.
He said the council was dealing with the 2.0 rate cap through expenditure cuts, but would likely feel the strain in the next three years and have to make difficult decisions about what services it continued to offer.
He said the council may have to consider applying for relief from the State Government measure.
Zaynoun Melhem welcomed three capital works projects for Silverleaf Ward.
“I think it’s about time we got our fair share,” he said.
In Noble Park North, $300,000 for a new kitchen at Jan Wilson Community Centre and there’s $900,000 for a new pavilion at Wal Turner Reserve, used by Silverton Football Club.
“Their facility doesn’t have men’s and women’s bathrooms and it’s just a facility that’s been there for over 25 years and it’s never been refurbished,” Cr Melhem said.
“We’re going to make it more accessible to both genders.”
In Dandenong North, there’s $200,000 for court resurfacing at Rosswood Tennis Club.
“That got tennis club of the year a couple of years ago at the Australian Open,” Cr Melhem said.
“Because of the courts and the diminishing state of them, it’s just dropped down in membership.”
The public will have until Wednesday 7 June to make a submission regarding the proposed budget.
The council will hear submissions at a Special Committee Meeting at 6pm on Thursday 15 June at the Dandenong Civic Centre.
The council intends to adopt the proposed budget at its Monday 26 June meeting.
