No borrowings, debt reduced

A $4 million loan to fund the West Gippsland Arts Centre redevelopment will be refinanced next financial year.

Overall debt will be reduced by $439,000 and there will be no new loan borrowings as part of the draft long term financial strategy approved by council last week.

The strategy directs council to only take out future loan borrowings to fund capital expansion and new projects rather than recurrent expenditure for day-to-day operations and asset replacement.

The future loan requirements, designed to support council’s long term infrastructure plan, outlines a plan to borrow $5.50 million and $3.88 million respectively over the 2020/21 and 2021/22 financial years to fund outdoor sports facilities and community hubs.

The financial strategy outlines a four-year future capital program that will require $32.7 million for new strategic projects - mainly being the development of sporting facilities and community hubs in response to the increased community demand.

The $32.7 million is to be primarily funded form external grants, new loan borrowings and council cash reserves.

Council has committed to the funding of maintaining and improving existing assets over the next few years as a priority. This will begin with a $12.1 million commitment in the 2019/20 budget out of the total $32.3 million capital works program.

Ratepayers have been urged to have their say on the draft budget approved in principle by Baw Baw Shire last week.

The draft budget and associated documents including council’s rating strategy and long term infrastructure plan, will now go out for community consultation and feedback.

The public consultation period will close on May 25.

Councillors have encouraged community members to read through the budget and associated documents including council’s rating strategy and long term infrastructure and financial plans.

Community members and organisations are encouraged to make submissions.

Anyone wanting to address council on their submission will have an opportunity at a special council meeting on June 5.

Submitters wanting to address council should indicate this in their submission.

Submissions also can be made online through the Have Your Say section on council’s website.

After consideration of submissions, the draft budget will be presented to council for adoption at its meeting on June 26.

The budget is required to be adopted by June 30 and a copy submitted to the minister within 28 days.

A $1.2 million redevelopment of Drouin Civic Park and the playground areas is a major project listed in the proposed 2019/20 capital works program. Council has focussed on improving recreation and leisure facilities in next year’s budget. Council will seek external funding from the Latrobe Valley Authority and Drouin and District Community Bank to assist with the Drouin Civic Park project.