Ratepayers group calls for more investment in community projects
A quarter of Darebin’s capital works projects are running behind schedule, with tens of millions of dollars going unspent. Ratepayers want the cash diverted, but the council says it will bank it because finding decent contractors is just too competitive.
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Almost $20 million allocated for capital works went unspent last year, and more than a quarter of Darebin Council’s projects were behind schedule.
The latest figures from the Council Plan Action Plan Progress Report 2018-19 Quarter 4 show the council spent $32.47 million on their capital works program during the year, $19.46 million below budget.
Darebin Council chief executive Sue Wilkinson said the money was made up of savings after contracts were tendered, with some projects not progressing and others changing in scope.
“The primary reason for the delayed expenditure shown relate to the difficulties in being able to procure suitable contractors for the delivery of capital works in a very competitive market,” she said.
Of the 129 projects listed for action in the fourth quarter of the 2018/19 financial year, 36 did not meet their target.
Projects such as the pedestrian bridge at Beavers Rd, Northcote, the Bill Lawry Oval redevelopment and the Darebin Multi-Sports Stadium fell behind schedule.
Despite the stadium project being listed as “on track” under the council goals, the project was delayed for months after asbestos was found in the soil.
A total of $7.8 million of capital works savings, $6.6 million of which came from last year, will be placed in the Major Works Capital Reserve to be used for future projects worth more than $10 million.
Darebin Ratepayers Group president David Schulze said it was “unacceptable” the council was prepared to push back much-needed upgrades to vital community facilities.
“Rather than banking the money away the council should commit to spending it all on the current projects, even if it’s in the next year, or spending it on other needs such as the roads, which are deteriorating by the day,” he said.
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Mr Schulze said more money needed to be allocated to the upgrades at Northcote Aquatic and Recreation Centre and Reservoir Leisure Centre to speed up their timelines.
Designs for the Northcote centre are underway and early plans will be presented to council late next year.
The council now has more than $1.4 billion in assets and equity, $56.6 million higher than expected.