Lismore council hears they don’t have the money to fix road backlog

Lismore’s Draft Budget reveals a heavy reliance on grants and contributions from higher levels of government to fill $19 million deficit.

Some of the potholes in Bright Street, East Lismore.

Lean times are ahead for Lismore, and the serious state of its roads was not set to improve in the near future, Lismore councillors heard when the draft Budget was presented last night.

While the Draft Imagine Lismore 2021/22 Operational Plan and Budget painted a better financial picture than last year, staff and councillors agreed there was still a long way to go before the council reached financial stability.

Cuts to non-core programs and increases to rates and fees improved the council’s cash position from last year to a $207,000 deficit this year, and a 10-year plan was in place to continue the path to a balanced Budget.

The Draft Budget also highlighted a deficit of $19,464,000 before capital grants and contributions were added.

“Unfortunately, it is not a good position as the cost of maintaining our assets far exceeds the rates, fees and other revenue council receives,” mayor Vanessa Ekins said.

Councillors agreed the Draft Budget revealed a worrying reliance on government spending to cover core costs, but most indicated a reluctance to raise more funds by applying for Special Rate Variations in the future.

They blamed “cost-shifting” by higher levels of government for the added strain on its financial situation, citing the waste levy as an example.

Councillor Marks said “we are the bottom feeders of government, and sometimes it shows”.

Despite a $66 million investment in important capital works over the coming financial year,

both staff and councillors highlighted areas of concern in the immediate future.

Councillor Bill Moorhouse asked whether the funds allocated to maintain sealed roads was enough.

Director of Infrastructure Services, Peter Jeuken, said $2.5 million was certainly not enough to repair all of the roads in the Lismore LGA, and disaster funding received in December would only offer a “limited opportunity for improvement”.

He said continued underfunding of road maintenance would become a long term problem, but the council’s Draft Budget reflected “what it could afford”.

He warned a large percentage of Lismore’s roads were “in danger of falling into the very poor, or poor level if roads are not funded”.

Cr Ekins said: “In the short-term, it means we are heavily reliant on Government grants to improve our roads and cannot start tackling our substantial backlog until this deficit is addressed”.

“The good news is that there is no reduction in the services we provide for the community compared with last year. In other words, we will still collect waste, maintain our parks, lend books through the library and continue with our scheduled roadworks,” Cr Ekins said.

As well as a streamlined $66 million capital works program, the draft budget proposes selling a small number of council-owned properties to generate about $2 million, a reduction in consultant, legal and labour hire expenditure, a small increase of spending in IT to improve internal efficiencies that will reduce overall costs and improve ratepayer and community experience, and an increase in fees and charges.

The planned $66 million capital works program includes:

• Roads and Associated Activities – Infrastructure $31,980,600

• Parks and Recreation – Infrastructure $8,286,600

• Wastewater – Infrastructure $7,682,800

• Water – Infrastructure $5,933,300

• Waste Disposal – Capping, Leachate, landfill planning, Internal roads and Compliance issues $5,089,000

• Wooden Bridges – Replacement Projects $4,372,600

• Plant Replacement Program $1,488,500

• Emergency Services – Bushfire Recovery $235,000

• Quarry – Precoat Plant $220,900

• Lismore Regional Airport – Infrastructure $200,000

• Asset Management – Infrastructure works $198,200

• Stormwater Management Services $153,000

• GSAC – Pool Filter Renewal $80,000

Survey and Design Equipment $4000

The Draft Budget will go on public exhibition for community submissions from May 10 to June 7. It will then go back to the council for adoption in June.

Councillor Eddie Lloyd implored the public to read through the Draft Budget and to tell the council what their priorities are.

“If you don’t, we can’t change it,” she said.

The community can make submissions from May 10 by going to www.yoursay.lismore.nsw.gov.au or visiting offices in Lismore and Goonellabah.