Super Debt

$3.22M LIABILITY: Council considers all options to pay by July 1

A RAFT of measures, including borrowing from council cash reserves and deferring upgrades and construction of new assets, have been suggested as a means to pay the Rural City of Wangaratta's $3.22m superannuation liability by July 1 this year.

A RAFT of measures, including borrowing from council cash reserves and deferring upgrades and construction of new assets, have been suggested as a means to pay the Rural City of Wangaratta’s $3.22m superannuation liability by July 1 this year.

Councillors will tomorrow night discuss options outlined in a report they requested council’s chief executive officer, Doug Sharp, to provide in order to pay the superannuation shortfall, as part of their 2013/14 budget deliberations.

The report from Mr Sharp recommends six measures to be included, namely:

* pursuing net operating expenditure savings;

* deferral of upgrade and construction of new assets;

* identifying asset sales;

* borrowing from council cash reserves;

* reducing the long services leave cash deposit; and

* participating in a sector wide borrowing scheme (proposed by the Municipal Association of Victoria).

The report says adoption of a range of measures will help minimise the impact of services to ratepayers.

While not contained within the recommended measures, the report says raising rate income is an option, and it states that on council’s 2012/13 rate income, an additional one per cent of rate income will raise $183,220.

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