Wyndham City Council will look to borrow $67.5m as part of this year’s annual budget

A council struggling to build infrastructure for its booming population is set to ask the bank for a series of huge loans to cater for the massive growth.

One of the fastest-growing council areas in the state is set to ask to borrow up to $170m as it struggles to meet the infrastructure needs of its booming population.

Wyndham City Council’s draft budget, released on Friday, estimated its borrowing from financial institutions would peak at $171m in the next four years, with plans to borrow about $67.5m in the next year alone.

Council voted in favour of releasing the draft budget for public consultation at its April meeting on Wednesday.

Wyndham chief executive Stephen Wall said financial pressures have had a significant impact on the council.

He said council needed cash “due to the rapid growth of the city”.

“Wyndham City is the fastest-growing municipality in Australia and while that brings many benefits, it also increases cost pressures,” he said.

“Like all businesses and families in Wyndham, Wyndham City has been impacted by cost of living pressures, interest rates and inflation.

“We also need the continued support of both state and federal governments to help build the infrastructure and provide the services that Wyndham residents want and need”.

Mr Wall said any money borrowed would be within the council’s prudential limits “as set by Treasury Corporation Victoria and monitored by the Victorian Auditor General”.

But councillor Josh Gilligan, who leaked the budget’s plans on social media earlier on Friday, claimed the council was looking to borrow too much.

“Record debt and borrowings is not what ratepayers signed up for,” Cr Gilligan said.

“Like state and federal governments we need to identify the waste and efficiencies like every household tightening their belt”.

Though his concerns were not shared by his fellow councillors, who voted 9-0 in favour of releasing the draft budget for public consultation.

Cr Gilligan and Cr Heather Marcus abstained from voting.

Several councillors who spoke in favour of the motion described this budget process as their “most challenging” yet.

Cr Jennie Barrera said council had to make “many tough calls” when putting a budget “with many moving parts” together.

“I think this presents a good vision for the community,” she said.

“We are the fastest growing municipality in Australia and with that brings many opportunities and challenges.

“I want to assure residents that we have spent a lot of times considering this budget proposal and what we have before us is a considered annual draft and budget”.

The draft budget includes a $168.3m capital works program and $432.2m towards key services that include kindergartens, maternal services and libraries.

The draft also includes $41m to maintain reserves and open spaces and more than $38m towards building new roads and improving Wyndham’s Active Transport Network.

Wyndham is expected to grow by 11,000 people a year over the next 20 years — its

population sits at about 300,000 people, with this figure expected to exceed half a million by 2040.

This surge in population is also expected to cause a massive school shortage for Wyndham, with council projections indicating a shortfall of six schools by 2031, with this blowing out to 16 by 2041.

The state government loans money to councils at low fixed interest rate — in 2018 it dished out $600m to councils to assist with infrastructure projects — but the council said it had “not borrowed money for several years” and would “assess the rates offered by both Treasury Corporation Victoria and other financial institutions to determine what was the best option for Wyndham”.

Council Watch vice president Dean Hurleston said Wyndham needed to ensure it was not borrowing beyond its limit.

“Wyndham Council needs to ensure it is not overextending itself...and that projects deliver a significant community benefit to large sections of the municipality,” he said.

“If expenses are wasteful, cut them and prioritise the basics, like streets, footpaths and parks”.