Coast fears debt crisis repeat

John Van Klaveren
SURF Coast residents fear a repeat of their $14 million council debt crisis of 2002.
Dissatisfaction with Surf Coast council’s performance has led to reconstitution of Speak Up for Spring Creek lobby group as part of an alliance of community organisations. Representatives of eight community groups met late last week to form the alliance.
The groups claimed council was irresponsible for putting the community “back into a mess after suffering 18 per cent rate rises to get them out of the last mess.”
Bellbrae’s Rod Foord said all groups were unhappy with council’s “back-flip” on development at Spring Creek.
Community objection to Spring Creek development attracted an “unprecedented number of objections in Victorian planning history”, he said.
“Council promised not to make any decision until the Sustainable Futures Torquay Jan Juc 2040 planning debate took place but in recent months has been lobbying Planning Minister Justin Madden on (a) planning scheme amendment, including moving the Torquay boundary to allow development at Spring Creek.”
Mr Madden recently approved the amendment, paving the way for residential development beyond the western boundary.
“We’re not opposed to growth as such – we’re opposed to the fact our elected representatives are not listening to us or explaining why they’re so hell-bent on growth,” Mr Foord said.
“We also question council’s desperate push for growth because its debt is running close to 60 per cent of revenue base. It’s a matter of extreme concern if council is driving growth to generate rate revenue to overcome debt.”
In a recent media release council admitted its debt was at 57 per cent of rate revenue but said State Government’s prudential level for councils was 80 per cent. Former councillor Ron Humphrey said the recommended prudential rate was actually 60 per cent:
“The Victorian Auditor General has established that debt levels above 60 per cent represent potential long-term concern about the ability to repay debt,” he said.
Mr Humphrey said council had already outstripped a strategic resource plan put in place in 2007 to specifically prevent another build-up of excessive debt.
Speak up for Spring Creek’s Grant Forbes said the community was generally dissatisfied with council and State Government.
“They made promises and have not kept them,” he said.
“There’s more anti-council feeling now that when the Spring Creek rallies occurred.”
Surfcoast Community and Ratepayers Association’s Spencer Leighton said his group was “outraged” at the “done deal” between council and the Government to change the western boundary.
Mr Leighton said the association was also worried about council’s growing debt, set to top $18 million. He wanted a “clear explanation” on how much council would spend and borrow for new offices as part of its $40 million civic precinct project.
“We can see that rates will be rapidly increased to fund infrastructure borrowings. We don’t want a repeat of council’s debt problems of a few years ago.”
Council refused to respond to the Independent’s request for comment.