Rates rise needed to help fix ageing assets

by Michelle Neathercote

The new General Manager of Wollongong City Council David Farmer has advised residents a rate rise would likely be one of a number of funding options needed to upgrade and maintain Council assets and the local government area infrastructure.
“There is a large amount of work to be done and this problem, which has developed over 50 or 60 years, will take many years to fix,” Mr Farmer said as he addressed a packed Local Area Meeting in Helensburgh recently.
“The cost (for these works) is in the order of $15-20 million per year ongoing and in a budget of around $180m this is a large percentage shortfall.”
Mr Farmer said identifying funds to reinvest in renewing and replacing aging assets will require a large number of reasonably small savings together with increases in income. He said the recent structural organisation of Council will save around $1million a year but they needed to obtain income from other sources, such as increases in fees, charges and rates.
“While it would not be right to indicate any specific rate increase in 2008, we are looking for increased governmental support as our position is not dissimilar to most local government in Australia.”
Mr Farmer said funding for increases in asset replacement and renewal will be spent right across the local government area. He said Council “will identify clearly its increased spending program in its Corporate plan which will go on display in February/March of next year”.
At the meeting, the General Manager also spoke about his “Vision of Council” and highlighted the northern Illawarra’s strong environmental heritage and tourism as its major attractions, rather than its scope for increasing residential and commercial development.
“The Illawarra’s far northern suburbs are characterised by their distinct village feel and the imposing natural environment that surrounds them, be they beaches, escarpment or bushland.
“With little urban expansion planned for these areas, there will be increasing demand from people who wish to live in these unique, small and beautiful communities that are still quite close to major employment and service hubs.
“These areas have very strong roles in the future of the Illawarra’s growing tourism industry and will also provide housing options for many creative, entrepreneurial people who are required to create ongoing employment opportunities in the larger urban areas which abut areas like Otford, Stanwell Park and Helensburgh.”