Brimbank council will explore funding options outside of rates revenue in a bid to strengthen its ability to fund major capital works projects.
Mayor Lucinda Congreve introduced the idea at the council’s October meeting and called for a report detailing options for alternative funding initiatives, including associated benefits and risks.
“Brimbank has enormous potential for growth and is fast becoming a major activity hub for Melbourne’s west – with significant development capacity and investment opportunities,” Cr Congreve said.
“Our capital works program is set to grow and council has a responsibility to ensure that our community is able to grow and prosper in a financially sustainable way.
“Essentially, we need to look at all opportunities to help reduce the funding gap for major development projects, including the St Albans Health and Wellbeing Hub, Sunshine Leisure Centre, Deer Park and St Albans libraries, just to name a few.”
Cr Congreve said rate capping had hurt the council’s revenue stream and that at current revenue levels many of the municipality’s infrastructure needs would not be met for some time.
“Considering alternative funding sources is a strategic approach to addressing budgetary pressures in a rate-capped environment.
“Council heavily relies on rates revenue with 76 per cent of overall revenue derived from rates.
“That’s challenging when we consider that council has lost $20 million in forecasted revenue since rate-capping was introduced – enough to fund one-third of the St Albans Health and Wellbeing Hub.
“Without alternative funding initiatives our community runs the risk of suffering ageing infrastructure and gaps in major capital investment for years, if not decades, to come,” she said.
Cr Congreve said the approach could bring about significant long-term benefits.
