Armstrong Creek storm water issues a hit to council funds

ARMSTRONG Creek’s strong growth has come at a cost, with the council forced to spend $18.4 million to buy a tract of land to deal with storm water run-off issues.

Councillors have agreed to spend $17 million to acquire more than 500ha in Charlemont and Armstrong Creek.

The area, known as Sparro- vale Wetlands, will receive diverted flows to remove the risk of harm to the Ramsarlisted Lake Connewarre.

The initiative requires the council to increase its high level of borrowings, with the city’s new councillors saying the process had provided a valuable financial lesson.

Councillors also voted on Tuesday night to build an underground bypass drainage pipeline along the council- managed Boundary and Harriott roads. The project, which can be designed and installed within the next 12 months, will cost the council $1.4 million.

The drainage solution is needed to carry excess flows and ensure planned growth can continue in the region.

The council has issued planning permits for about 3500 lots in the Horseshoe Bend Precinct. However, development is limited until the Sparrovale Wetlands are ready to receive storm water.

After strong residential sales, work on the three active residential estates in the precinct might soon be halted, planning and development director Kelvin Walsh said.

The land acquisition will have a hit on council’s budget, which councillor Anthony Aitken described as a “significant financial responsibility”.

“There is $9.1 million avail- able; we have to find $7.9 million to fund the shortfall,” Cr Aitken said.

Mr Walsh said the council would recover cash from developers over the next 20 years.

However, it will need to increase borrowings over the next three years to pay for it.

The council’s loan balance had been budgeted to top $105 million in 2018-19, rising to $124 million two years later.

Cr Aitken said it had pro- vided “a valuable lesson”, while raising questions about appropriate locations for residential land.

The Sparrovale Wetlands aims to reduce the speed of urban storm water run-off, remove rubbish and reduce the nutrient levels in the water.

In the long-term the land will be developed as public open space, with walking trails, bird watching and heritage interpretation initiatives.