By Cam Lucadou-Wells
Greater Dandenong Council has made a mid-year raid of $2.9 million to shore-up funding of its major projects.
After a mid-year budget review, councillors approved a $1.016 million transfer to the Major Projects Reserve fund as a contingency against rising construction costs and for future project funds.
The council also made a one-off $1.9 million transfer from its Open Space Acquisitions Reserve to the Major Projects Fund.
According to the review report, the $1.9 million related to the expected sale proceeds from council properties at 6-8 Fifth Avenue Dandenong and 90 Gove Street Springvale, which were instead retained for open space.
The review reported a $900,000 blowout due to delays to the Springvale Road boulevard project, which were offset by $900,000 savings on the Abbotts Road upgrade.
The council’s new corporation South East Leisure was forecast to lose $382,000 due to the delay in the Noble Park Aquatic Centre upgrade, as well as spending $200,000 to re-sand and repair courts at Dandenong Stadium.
Meanwhile, $6.12 million of borrowings were deferred until 2023-’24 for the council’s delayed Keysborough South Community Hub project.
Also on hold were $500,000 in detailed planning for the $230 million Dandenong Sports and Events Centre, and $400,000 for a feasibility study into a new table tennis centre.
Meanwhile, the “devastating” financial impacts of Covid-19 was expected to continue for “several years to come”.
So far, it has struck $27 million off the council’s bottom line in the past four years.
Dandenong Market had still not delivered a financial return since 2018-’19, with future year returns still “uncertain”.
“Falling customer numbers and lower foot traffic have necessitated ongoing support for traders and this may yet take years to fully recover,” the council reported.
There were also “critical” drops in supplementary rates as well as an $800,000 hit to parking machine revenue.
The council however expected a significant increase in investments’ return due to steepling interest rates.
On the other hand, its plan for “significant future borrowings” will be hit by more expensive interest bills.
“‘Long-COVID’ is more than just a public health issue and impacts across several key income and expenditure lines, which will continue to be felt for several years to come,” the council report stated.
