By Alesha Capone
Wyndham council cannot afford to pay for the infrastructure needed by the municipality’s booming population, according to a draft plan released last week.
The council’s draft long-term financial plan for 2021-22 to 2030-31 said population forecasts show that an additional 217,000 people will move to Wyndham in the next 20 years.
By 2040, the council will be responsible for delivering over 60 services – plus infrastructure including roads, parks and waste disposal – for more than 500,000 residents.
“The demand for capital to build the new infrastructure needed by growing communities in Wyndham is currently greater than what council can afford,” the draft plan states.
The document said that council “is currently in a strong financial position” but that this “will need to be carefully managed” because its ability to generate revenue is constrained by the state government’s rate-capping policy.
The document said that funding from other levels of government has not kept pace with growth, in areas such as maternal and child health.
The draft plan said council manages assets valued at $3.4 billion (excluding land) which increases by about $300 million per year, resulting in a hefty bill for renewal and maintenance works.
The budget to renew older infrastructure was described as “at best, barely adequate” due to the council’s heavy investment in new capital works.
The draft plan said in four to five years, council funding to renew infrastructure “will be insufficient to maintain current service standards”.
“Based on current levels of expenditure the asset renewal gap could be $1 billion by 2045.”
Councillors Josh Gilligan and Mia Shaw expressed concern that some major projects planned by the council may have to be “culled” or “deprioritised” as a result of financial pressures.
However, other councillors said this would not occur, because the council planned its spending and set a budget every year.
“The long-term financial plan is obviously based on assumptions and estimations of what council staff think will happen over a 10-year period,” Cr Sahana Ramesh said.
Have your say on the draft financial plan by September 26. Details: theloop.wyndham.vic.gov.au
