An increase in funding of more than $1.8 million over the next two years has been hailed as a potential game changer, which could be used to defer the prospective Special Rate Variation (SRV) until September 2016.
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The funds were allocated to the Yass Valley Council (YVC) over the next two years in July this year, as part of the Federal Government's Roads to Recovery Programme to be used within the 2015/2016 and 2016/2017 financial years.
The SRV was discussed at the Ordinary Council Meeting last Wednesday and the funding was considered as an opportunity to undertake some of the key works identified in the FFTF Special Rate Variation for the next two years. However, it was described as an unstable way of addressing the long term situation.
General Manager David Rowe said if additional funds are not forthcoming to arrest the infrastructure backlog, the situation will deteriorate very quickly. He said this will cost the community even more and hence, this type of funding is unsustainable
“One of the major concerns that came out of the community consultations for Council’s Fit for the Future submission was the need to undertake more maintenance grading on the unsealed road network with Yass Valley,” Mr Rowe said.
“Roads to Recovery funds cannot be spent on this.”
Roads to Recovery funding can only be applied to capital works but not to any maintenance programs, therefore demands on maintenance and other service areas of Council will still require adequate funding. If the Roads to Recovery funding was ongoing the financial situation for YVC would be completely different.
“YVC has already committed to undertaking a thorough review of our efficiencies, however the demand and level of service that is required to meet the needs of residents within our LGA also continues to grow,” Mr Rowe continued.
“Learning to live within our means is a simplistic approach to our financial situation, as Council must ensure that future generations are not burdened with an increasing infrastructure backlog as well as meeting the current community demand for services.”
Although the funding is only available for two years, questions arose about whether these funds could be used to reduce the percentage of the SRV.
Mr Rowe concluded that the level of any SRV determined in the future would be the result of a full financial analysis inclusive of all grant funding and any efficiency savings that have been identified.
“Roads to Recovery addresses a shortfall in road funding over the next two years but not beyond that,” he said.
Other considerations for the funding are road improvements including gravel re-sheeting, timber bridge improvements and rural road safety.
“Roads to Recovery funding can only be applied to capital works but not to any maintenance programs.
“The additional funding will only address a very small part of a much bigger problem.”
Consideration of a SRV won’t be discussed until after next year's election.