Ratepayers kept in the dark with …

By Melissa Grant
CARDINIA Shire Council has more debt than any interface council – and it is unclear what the debt has been used for.
Cardinia Ratepayers and Residents Association (CRRA) president Gloria O’Connor has called on the council to reveal the breakdown of its $44.6 million debt and said ratepayers should know what they have got for their money.
It is understood that the Cardinia Cultural Centre and the Cardinia LiFE aquatic centre are among the infrastructure projects included in the debt.
The Gazette has requested details of the council’s debt but was told such an analysis would be tedious and too time consuming.
Mrs O’Connor was given a similar explanation from the council after requesting the information in her 2009/10 budget submission.
She did say however, that corporate services general manager Neil Thorpe offered to show her how much debt was outstanding at the end of each financial year dating back to 1998.
“I’m not entirely satisfied with the response,” Mrs O’Connor said.
“I do think it’s a bit poor that they cannot be more specific.
“I don’t think it would be that hard to identify what projects are still being paid off.
“If people knew, it’s like anything, they say we don’t like this but we know what we are getting for our money.”
Record growth of four and half families a day and dwindling government grants are the reasons civic leaders have given for the council’s debt – the largest of any interface council in Victoria, a group of eight growing municipalities which form a ring around metropolitan Melbourne.
Only Mornington Peninsula Shire has a debt anywhere near that of Cardinia, $42.487million in the red.
The remaining six councils have debts of $25.362 million or less.
The Cardinia Shire Council’s debt level was a hot topic when civic leaders adopted the council budget last month.
Cr Brett Owen said the debt racked up quickly between 2003 and 2005 and that it wasn’t possible to reduce it in the same amount of time.
Cr Ed Chatwin said the council’s operation costs ($57 million) were increasing too fast.
“Why are we spending much more than interface shires?”
Cr Collin Ross slammed the council for paying $3 million each year in interest repayments, saying too much money that could be used for infrastructure projects and rate reductions was being lost because of it.
The council has committed to reducing its debt by $1.4 million over the coming financial year, and councillors have committed to shaving $8.9 million off the figure over the next four years.
Cr Graeme Legge said that move honoured promises of debt reduction which candidates made at the council election.
He said record growth required adequate services and infrastructure.
Cr Owen said reducing debt by $1.4 million over the coming 12 months was realistic.
“Any council which wants to reduce debt by more than this each year does so at a consequence,” he said.