Council’s capital works backlog - $22m works carried forward

Several of the significant projects that were carried over from the 2023/24 budget to be constructed in the near future include:

•The Yarrawonga Library with a total 2024/5 project cost of $5,694,000 and council funding of $2,733,000

•Yarrawonga Multisport Stadium with a total 2024/5 project cost of $2,000,000 and council funding of $1,000,000

•The Yarrawonga 5-Ways’ Roundabout with a total project cost of $1,200,000 and council funding of $300,000

•The Yarrawonga McLean Street Kerb and Channel with a total project cost of $289,000 and council funding of $289,000

•The Yarrawonga Shannon Court Drainage Upgrade with a total project cost of $212,000 and council funding of $212,000

•The Yarrawonga Library (Town Hall Precinct – Stage 2 Designs) with a total project cost of $120,000 and council funding of $120,000

The 5-Ways’ Roundabout and Shannon Court Drainage Upgrades are both subject to grant funding being approved.

Other smaller projects carried over include: Yarrawonga Woods Road Kerb and Channel, JC Lowe Entrance Lighting, Yarrawonga Primary School Land, Bundalong Pyke Street Drainage Upgrade, Yarrawonga Aerodrome Taxiway Compliance Works and Yarrawonga Primary School Building.

Council’s Chair Administrator John Tanner, AM, said while delivering community services was at the “forefront of our priorities” council was also focused on clearing a backlog of capital works.

“We have committed to and will be progressing long-awaited major projects, specifically the new contemporary library and multisport stadium in Yarrawonga and the flood levee works in Numurkah,” he said.

“Road safety has been a key focus for Council in the past 12 months and we are confident we will secure blackspot funding in order to be able to deliver key intersection upgrades to enhance road safety in Strathmerton, Numurkah and Yarrawonga.”

Council chief executive Matthew Morgan told the Yarrawonga Chronicle last month the capital works backlog was going to put a big dint in the council’s accumulated cash reserves over the next 18 months.

“Although we are forecasting a cash reserve balance at June 30, 2024 of $55.36 million, once we account for and deliver the backlog of approved capital works in the coming 12 to 18 months, and we boost our asset renewal ratio to 100 per cent, we anticipate that this reserve will drop down to approximately $20.3 million of which only $1.61 million is unrestricted cash by 2028,” he said.

In commenting on the first draft budget since he became Moira chief executive in January, Mr Morgan said financial constraints may limit future capital works.

“We are working within the State Government’s rate cap of 2.75 per cent, however we are susceptible to cost increases as is any other organisation and we have the added complication of the state increasing its land and waste-based taxes which will impact on our ratepayers,” he said.

“In the coming years we’ll be looking at how we invest in renewal of existing assets as opposed to creating new assets and facilities, which will mean in some instances tough decisions need to be made around future projects and ‘nice to haves’ versus the core areas of responsibility for council.”

But the chief executive said he believed the budget was “carefully crafted”, considering the competing pressures.

“This budget has been carefully crafted after considering a number of factors including the cost-of-living challenges, the changing and growing needs of our community, community submissions received during the early consultation process, the financial constraints of council itself along with the need for council to continue to deliver the services expected by our community,” he said.

The rate rise of 2.75 per cent is the maximum allowed under this year’s rate cap and brings council’s rate and municipal charges to $36.32 million.

Council said despite the rate cap, general rates were set to increase 5.4 per cent compared to the forecast.

This was due, council said, to last year’s “supplementary rates being included in the base calculation for the 2024/25 general rates. Therefore, increasing the base average general rates compared to 2023/24.”

The draft 2024/25 budget will be available for public inspection at council service centres and on council’s website by visiting www.moira.vic.gov.au.

Members of the community will be invited to view and provide feedback on the draft budget up until Monday, June 3.