Liam McNally
Moorabool council is conducting a report into the state of its 2023-24 budget around potential overruns and delays in capital works.
Cr Paul Tatchell raised concern at a council meeting on Wednesday, July 5 about delayed council projects adding to budget costs.
“It’s not so much about the actual fact that the projects are behind … my concern is that it will have a dramatic effect on our budgetary requirements going forward … when you have large delays it has a fiscal problem that’s associated with it,” he said.
Cr Tatchell suggested a “mini budget” be conducted to reassess the costs of delayed projects.
Council chief executive Derek madden revealed council officers are already conducting a report on the issue that will be presented to councillors at an upcoming briefing.
“Most of the areas that are under significant strain are in the capital works space … once that report comes back to council I think that will give us very strong guidance on where to go from there,” he said.
“The costs still seem to be continually escalating, but they can’t continue forever … In saying that I don’t think it’s doom and gloom. Three to four of our major projects are where the issues seem to be, and it’s really around materials.”
When asked by Star Weekly, Mr Madden did not confirm which four projects he was referring to, however Moorabool’s 2023-24 budget contains $15 million in capital works brought forward from the 2022-23 budget.
The budget states that capital works in 2022-23 ended up costing $8.82 million more than what was forecasted, and at the end of each financial year there are projects which are either incomplete or not commenced due to factors including planning issues, weather delays and extended consultation.
The most expensive projects brought forward to the 2023-24 budget include the $2.8 million Bacchus Marsh Bowls Club Pavilion and Bowling Green, $1.82 million for preplanning and construction of the Bacchus Marsh Indoor Recreation Facility and $1.65 million for the land transfer, design and construction of the West Maddingley Early Years Facility.
Mr Madden said officers will be conducting a thorough review of the capital works program and will present a report to council.
He said that the report will be extrapolated over five years and factors in two more rate rises.
