Super blowout could get worse

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.”

Anthony Radford | Bendigo Weekly | 13-Jul-2012

BENDIGO’S superannuation shortfall could get a lot worse than this year’s $11 million, according to the city’s mayor.

The City of Greater Bendigo council was “shocked” last week to discover its share of the $400m statewide unfunded superannuation bill was so high.

The scheme provides those who joined councils between 1982 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.

Council is looking at a range of options for how to pay the shortfall, and has not ruled out scaling back its capital works budget this year.

Mayor Alec Sander said he did not think the problem would go away anytime soon.

“The fund has to stay active until the last member ceases to draw a fund,” he said.

“One of the reasons it would be so high now is there are so few people contributing to the fund.

“My personal opinion, is that it will get worse, because as time goes on there will be less and less people contributing to the fund, and more and more drawing off it.”

Cr Sander attacked the rules of the fund, which mean it had to be funded in case everyone retired and started drawing on it on the same day.

“I would like to see the government change that rule so the fund doesn’t have to be fully funded at that time, and that will take the pressure off the fund to make these draconian calls on local government,” he said.

Cr Sandner said a council-requested report would look at all options for paying the debt, but he would not be drawn on whether cutting the capital works budget was an option.

“I’m not going to be drawn as to what may or may not be in the report,” he said.

“Our options are to borrow funds to do it, I can’t see us putting up the rates to do it.

“I believe there will be a system where we could pay it off over 15 years at a low rate of interest.

“But, as councillors have already recognised, that is only a band-aid fix, because in three or four years there could quite easily be a call of the same magnitude.”