By JESSE GRAHAM
MURRINDINDI Shire Council is bent on resolving a $1.76 million budget shortfall due to costly new buildings, and is calling on residents and political candidates to help work out a solution.
The council recently announced that, due to the cost of insuring and maintaining assets gifted after the 2009 Black Saturday bushfires, it was left with an annual $1.76 million shortfall in its yearly budget.
Murrindindi CEO, Margaret Abbey, told the Mail that the shortfall followed the council receiving $31 million in gifted infrastructure in 2011, which was built as part of the reconstruction of Marysville, Kinglake and Narbethong, and was expected annually for 10 years.
She said the gifted assets were a display of the wider community and government’s generosity, but added that the council was left short, due to the high costs of maintaining new buildings.
“We know we will benefit from them (the buildings) and it’s important for the community recovery process to have them, but they’re often built at a higher standard than what a small rural council can afford,” she said.
Ms Abbey said the council had been collecting opinions from residents about how to solve the problem, with sale of assets, raising rates or reviewing services and expenditure on the table.
The public submission period closed on 7 October, though the council is still accepting late submissions.
“We’ve had over 150 comments in one way or the other, through letters to the local paper, on our Facebook page and contact with council,” she said.
“Whilst that’s a small proportion in terms of our total population, we’re very pleased by the feedback we’ve received.”
Ms Abbey said the council had asked the State Government to lend a hand, and possibly provide a one-off lump sum payment of $14 million which, with interest, would fill the shortfall – but was knocked back.
“In June this year, the Minister for Local Government indicated that council would not be receiving any further assistance, but rather we would be able to apply for grants if the possibility came up,” she said.
Minister for Local Government, Tim Bull, said the council was aware in 2011 that it would take all responsibility for the costs of the gifted assets, and ruled out a lump sum payment.
“We will not be providing lump sum up-front payments to any council for future maintenance or renewal of what are practically new state-of-the-art facilities,” Mr Bull said.
He said the council had received $1 million annually in Country Roads and Bridges Money, along with $2.14 million in a once-off funding grant through the Local Government Infrastructure Program, which could be used for maintenance of the assets.
“The State Government has also indicated it will consider any future requests for funding under the Regional Growth Fund from Murrindindi,” he said.
Mr Bull said a government representative would be checking over the council’s costings for their maintenance and renewals.
Ms Abbey said the council had been in contact with candidates for the Eildon electorate in the lead-up to the 29 November State Election about the shortfall.
She said the council would be expected to provide an update to the community in late November.
For more information, or to make a late submission, visit www.murrindindi.vic.gov.au.
