The question of how much local governments should borrow to help economies recover is likely to be a key issue for Ballarat's new council.
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While there is a broad consensus at Federal level that more debt - and an expanding deficit - is inevitable in the short term, there is more debate at the third tier of government.
One of the first tasks facing the new nine-member council, which will be confirmed next month, will be to draft a council plan. This will set out the organisation's strategy over the next four years - and is also likely to shape the level of borrowing required.
A recent letter published by former mayor John Barnes urged any new council to be inventive in the projects they considered - and suggested increasing borrowing levels to help fund projects and prompt recovery.
Several councillors have previously argued against that approach.
Mr Barnes highlighted that no current candidate had explicitly advocated borrowing more money*.
As it stands, the City of Ballarat spends less than three per cent of its annual budget servicing debt.
A potential $17 million increase in total borrowings outlined in the budget earlier this year may not be required, councillors were also told last month.
That same City of Ballarat budget describes how state government has advocated for local councils to borrow more. It says: "Since the introduction of the rate cap by the Victorian Government, the local government industry has been told that levels of debt within local government are at low levels and local government should borrow additional funds to assist with the funding of community projects."
It also outlines various debt guides issued by the state government, which ultimately oversees councils, with a total ceiling of 150 per cent of rate revenue. A high debt level is stated as standing at 100 per cent of rate revenue, with a medium level at 60 per cent, while "low" is set at 40 per cent of the total sum gathered for rates.
The City of Ballarat has a self-imposed maximum debt level of 50 per cent, although historically it has remained well below the "low" level.
The projected total rates and charge revenue for the next financial year stands at around $124 million.
Existing councillors, including Grant Tillett and Mark Harris, have been outspoken supporters for low levels of borrowing. Both have argued for debt levels to be kept to a minimum.
Meanwhile central ward candidate Geoff Howard - a veteran of state and council budgets - told The Courier in the candidate questionnaire that he believed services should not be cut.
However, he said efficiencies could be looked at, and suggested council projects be brought forward if they could act as a catalyst to creating jobs.
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The Greens candidates meanwhile have said they would prioritise spending on infrastructure and measures to address climate change.
The avoidance of any talk of further borrowing is in contrast to what is playing out at a Federal level. Here the size of the future deficit does not seem to be a major political point of contention - for the time being at least.
The Coalition's budget last week foreshadowed a trillion dollars worth of debt over the next four years. While there is significant debate about the targeting of that funding, there is a broad consensus that a large deficit is inevitable at Commonwealth level.
Statewide In Victoria, the approach is less bipartisan. Premier Daniel Andrews has talked up the recovery measures and stimulus for the forthcoming budget - with more borrowing likely - while the opposition leader Michael O'Brien has attacked the current levels of debt.
There has also been a significant contrast between different municipalities. The City of Greater Geelong outlined one of its biggest ever capital works programs in its most recent plans.
Its latest budget outlined a $161.2 million spending plan, fuelled by new borrowings of up to $66.9 million this year. Both Ballarat and Bendigo councils opted for a more conservative approach to spending for 2020/21.
The next council budget is scheduled to be adopted in June next year, but discussions on the council plan will start shortly after the new councillors are voted in.
*Editor's note: Geoff Howard clarified he would advocate for council projects to be brought forward to stimulate jobs rather than as a catalyst to spending as we put in the original. The article has been amended to reflect that. He further clarified that he would be open to the idea of council taking on greater debt, and would request a report on the options to council if elected.
Nick Shady also contacted The Courier after this article was published and said he would be open to council borrowing more, particularly in support of a full upgrade of Ballarat Airport.
Full budget coverage:
- Ballarat budget 2020/21: Council pushes back budget decisions
- Ballarat draft budget 2020/21: What's the real deal for how our money is being spent?
- City of Ballarat draft budget 2020/21: Residential rates to go up
- Council to cut agency staff
- Ballarat City Council's 2020-21 draft budget amid coronavirus (COVID-19) pandemic
- City of Ballarat budget 2020-21: Council proposes borrowing $17m for post-coronavirus budget
- Ballarat council draft budget 2020/21: Figures are not the full story
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