Council blowout $2m a year

BENDIGO’S residential Strategy will be reviewed because of greater than expected growth.

The State Government has announced a grant of $50,000 to carry out the review.

The review is needed because, according to the State Government, 40 per cent of the forecast growth between 2006 and 2031 had already been realised.

Regional Development Parliamentary Secretary Damian Drum made the announcement this morning.

Mr Drum said the Bendigo Residential Strategy Review would deliver greater community and investor certainty, helping the region grow.

“The Bendigo Residential Development Strategy was adopted in 2004 and is currently being audited because of the faster than anticipated growth that has occurred in Bendigo in recent years,” he said.

“Strong residential growth has many flow-on economic benefits and having a clear framework for future development will position Greater Bendigo City Council to undertake more detailed, place-based planning in the future.”

Deputy Premier Peter Ryan said about 40 per cent of the forecast growth between 2006 and 2031 had already been realised.

The Residential Strategy impacts directly on where and how property developments use “infill” parcels of land, range of housing styles and also on housing affordability.

“This project will review the strategy, assess current and estimated land supply and demand and consider various legislative and policy changes,” Mr Ryan said,

“It will also consider the latest demographic data and establish a new strategic framework to guide the long-term residential growth of Greater Bendigo.

“The project will result in a revised residential strategy that will give developers, the community and service providers greater surety and confidence about where land can be developed for residential purposes, and that sufficient land is available to accommodate the City of Greater Bendigo’s future growth.”

Mr Ryan said a contemporary strategic planning framework was essential to the economic development of a large regional centre like Bendigo.

“Clearly identifying future growth options and supporting infrastructure needs will enable the Greater Bendigo City Council and other infrastructure providers to plan their capital works programs well in advance,” he said.

“Identifying long-term growth areas will enable the council and other service authorities to start planning for the delivery of services, thereby minimising the lag time between when residential development occurs and when the services need to be in place.”

Bendigo Weekly | Bendigo Weekly | 24-Jul-2012

THE City of Greater Bendigo’s unfunded superannuation liability has cost ratepayers more than $2 million a year since 1998.

In a report to that went to council this week, it is revealed $14.2 million shortfall has been paid to the fund from 1998 to 2010.

This year, about $11m is unfunded, bringing the total since 1998 to more than $25m.

The superannuation scheme provides those who joined councils between 1947 and 1993 with a fixed super return on retirement, no matter how bad the investment returns are.

Any shortfall between what is owed and what the investments returned is paid by the council they were employed with.

The council will vote on ways to end the shortfall to ease the financial burden, and has been presented with a number of options.

Among them are options to lower spending across the council, borrow money and cut jobs.

However, the recommended option is to lobby the Federal Government to transition back to a stage-managed scheme.

This would mean removing the need for the fund to be fully funded.

Being fully funded means there must be enough money in the fund at the end of a financial year to fund the immediate payment of all the people in it, should they all retire at once.

That is an unlikely scenario and adds a significant burden to the costs.

The report also highlights the welfare of the 105 Bendigo council staff on the scheme.

It claims staff morale would drop if council had to incur extra costs to fund the shortfall.

“The emotional wellbeing of 105 City of Greater Bendigo staff needs to be handled sensitively and respectfully,” council Community Wellbeing director Pauline Gordon said.

“These officers have each served the community since 1993 or longer.

The average membership ... was 24.6 years at December 31, 2011.

“The issue should not be a burden placed on their shoulders for a compulsory scheme they were required to join, nor any pressure placed on them to take personal action.”