Budget piles on council’s debts

By Melissa Meehan
DESPITE Cardinia Shire Council being close to $43.4 million in debt, its draft Budget proposes to borrow another $2.5 million to purchase recreational land in Pakenham.
The loan has been proposed to buy land in the Cardinia Road Precinct, but the interest and principal repayments will be fully funded from Cardinia Road developer contributions.
The proposal coincides with the 6.9 per cent rate increase announced in the draft Budget for 2010/11.
Mayor Graeme Legge said the budgeted rate increase was necessary to continue to provide the community with quality facilities and continue the council’s debt reduction strategy.
But despite the council’s large debt, the draft Budget does not decrease its spending. Cr Legge said the draft Budget focused on achieving the right balance between servicing Cardinia’s record growth as well as maximising value for money.
“The draft Budget has been developed to enable the council to continue to meet the challenges associated with a rapidly expanding population and includes a capital works program totalling over $23 million will ensure our residents have access to an expanding range of recreational and leisure opportunities,” Cr Legge said.
It also includes restoration of the Pakenham Lilypond and the ongoing conversion of street lights in the shire to new energy efficient lighting which aims to cut greenhouse emissions by up to 50 per cent.
Councillor Brett Owen said he believed residents would see the 6.9 per cent rate rise as reasonable, as long as they saw the money was being spent wisely.
He said the council’s decision to reduce the debt over time was the best way to do so.
“We can’t stop projects for five years,” he said.
“Most people will be OK with the rate rise, when you put it in perspective.”
But not all councillors followed Cr Owen’s sentiments – Councillor Collin Ross refused to support the Budget for the second year in a row.
“We live in a world where we spend first and pay later,” Cr Ross said.
“Our residents can’t afford the increase and shouldn’t be slugged extra.”
Cardinia Ratepayers and Residents Association president Gloria O’Connor said the council appeared to be out of touch with financial reality. “This is a property revaluation year, 6.9 per cent at this time will impact very harshly on many ratepayers,” Ms O’Connor said.
“I am surprised the council is proceeding with ‘business as usual’ Budget when they could have taken a more cautious approach having in mind the tight financial situation facing many residents.”
Ms O’Connor said she expected the need for welfare assistance would be much greater this year.
Copies of the draft Budget papers can be downloaded from the council’s website at www.cardinia.vic.gov.au.
Residents are welcome to make submissions, which will be considered at a special meeting of the council on Tuesday 15 June at 7pm at the council offices in Henty Way, Pakenham.