A SOUTH-WEST council has forged ahead with its next budget with cash in the bank and without any borrowings, however one candidate vying for a seat on council argues this is the time to "loosen the purse strings".
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Councillor's gave Corangamite Shire's $55.7 million 2020-21 budget the green light on Tuesday.
It includes a $4.8 million coronavirus relief package for ratepayers and an expected surplus of $5.2 million, despite freezing rates and charges due to the coronavirus pandemic.
Mayor Neil Trotter praised the conservative budget and said money showing up in cash reserves was committed to future projects.
"It's a responsible budget that will probably need to be reviewed as we progress uncharted waters," he said.
The budget continues the council's record of no borrowings for the third year in a row.
Cr Simon Illingworth said borrowing money wasn't an option.
"People ask why doesn't council borrow millions and stimulate the economy?"
"We haven't gone into debt yet but we'll borrow if we need to."
It comes after business economist and council election candidate Michael Emerson suggested the coronavirus crisis warranted dipping into the reserves, saying the "rainy day had come".
The council has a number of cash reserves, including $5 million in the bank which is accumulating interest.
Key changes from the draft budget
Key changes from the draft budget:
- $4.5 million in state government funding for the Twelve Apostles Trail
- $2.28 million dollars in federal funding for local roads and community infrastructure projects
- Around $355,865 from the federal government in financial assistance grant funding.
- A $100,000 reduction in council's investment earnings.
Rates and charges
The budget will collect $22.1 million in rates and charges but freeze rates at last year's levels, but property valuations will determine if an individual's rate bill will actually go up or down.
Every household will pay about $359 for waste collection, up almost $20 on last year. It foreshadows an increase in the landfill levy in January next year.
About $202 of each ratepayer's bill goes towards covering the administrative costs of council.
The total capital works program will be $20.30 million, of which $10.70 million will come from council operations, $9.42 million from external grants and $180,000 from community contributions.
They include a $125,000 upgrade to the Lismore Swimming Pool and $70,000 works on the Camperdown Theatre through the Berrybank Windfarm community project and a $1.65 million road reseal program.
The council will spend $9.20 million on road, drainage and bridge assets.
The upcoming by-election is expected to cost the council $144,320.
Major budget initiatives:
- Twelve Apostles Trail - construction $6.2 million
- Local roads and community infrastructure $2.2 million
- COVID-19 economic stimulus and support package $2.5 million
- Cobden streetscape construction $300,000
- Timboon town centre activation construction $450,000
- Council grants programs $347,500
- Traineeship and apprenticeship program $105,000
- Recreation reserves master planning $50,000
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