Costs soar for urban growth

Council faces big infrastructure bill

GEELONG’S strong urban growth has left the council facing a $100 million infrastructure bill over the next two decades.

As building activity in Armstrong Creek and Drysdale/ Clifton Springs soars, a rising gap between developers’ contributions and the ratepayerborne costs is alarming City Hall’s leaders.

The financial burden has raised the prospect of more contentious medium-density housing in the city, such as the recently-approved 61-dwelling complex on the site of the old Geelong West Bowls Club.

The council has revealed that it needs to address a $25 million funding gap between what it receives from developers through contribution plans and a State Government-capped levy.

That sizeable shortfall puts pressure on the council to provide vital infrastructure, such as intersections, drainage and shared paths.

However a much larger bill for unfunded community facilities, such as a library, sports stadium and aquatic centre for Armstrong Creek, awaits.

“It’s estimated that on their own these unfunded projects could cost close to $80 million,” chief administrator Kathy Alexander said.

She has forecast less lowdensity greenfield developments and a sharper focus on creating multistorey apartment blocks in built-up suburbs.

“It’s a debate we need to have and one that should incorporate the role of sensitive and innovative medium density urban design around already established infra- structure,” she said.

“The fact is that our region can’t afford its current rate of growth without making changes to our urban planning, and to how we allocate funding across the city’s services.”

Dr Alexander said the figures highlighted the need for a full review of the council’s long-term financial position.

The administrators have already taken aim at the council’s financial borrowings, which have more than tripled in the past five years and are projected to sit at $93.3 million in June 2017.

“We need to be vigilant and financially strategic in the allocation of resources,” Dr Alexander said.

Data until the end of June shows the take-up of homes in Armstrong Creek/Mt Duneed was 60 per cent above original forecasts. There were 2349 homes in the area, almost 900 more than the council had predicted.

The Jetty Rd development in Drysdale/Clifton Springs in 2015-16, was double the lot production on the previous year.

“It’s estimated that on their own these unfunded projects could cost close to $80 million.” KATHY ALEXANDER