By GARRY HOWE
BORROWING $20 million to purchase the new Cardinia Civic Centre in Officer has taken the shire’s debt level to a peak of $67 million.
However, there is no panic in council ranks.
Councillors and officers talked up the move to purchase the $25 million development in favour of a previous lease arrangement as being a positive in the long term.
They say the extra borrowings will not lead to any increase in rates and the debt can be adequately serviced by responsible fiscal management over the next few years.
The civic centre price tag and level of debt came to light as councillors adopted the 2013-14 draft budget at a special meeting on Monday night.
A proposed rate increase of 5.9 per cent was flagged – down from last year’s 6.8 per cent increase – to help cope with the infrastructure and service needs of a growth corridor (see full story page 13).
Mayor Graeme Moore said the move to new offices would consolidate all indoor staff into one location to enable greater organisation efficiency, improved customer service and easier access to the council.
“Council will finance the purchase through a $20 million loan without any increase in rates,” he said.
“We will also have control over the land and, ultimately, earn revenue from commercial enterprises on the site.
“From a financial perspective, purchasing the civic centre from Places Victoria rather than leasing also provides a significant asset at no additional cost and means we will be substantially better off in the long term.
“Residents can be confident that council’s move to Officer makes sense not only for the organisation, but, most importantly, for the broader Cardinia shire community.”
During discussion on the draft budget, Cr Jodie Owen said the council was able to purchase the civic centre at a figure that was less than the cost of leasing the property.
Manager of corporate services Derek Madden explained that the council had budgeted for the lease payments and that would now be used to service the loan.
He said that at the end of the loan term, the council would have spent no more on the project, but would hold the asset.
Cardinia Shire Council is preparing to move into its new home in July with the civic centre a key part of the ongoing development of the Officer town centre.
Cr Moore said the civic centre’s five-star energy efficiency rating would mean savings in heating and cooling bills.
He said it would also mean the council no longer had to rent additional office space around Pakenham.
“The current Pakenham offices were built in the early 1980s and no longer provide enough space,” he explained.
“Staff are working from portables and other sites.
“Having all staff together will also deliver gains in productivity and efficiency.
“We expect that the move will lower our energy bills by up to 50 per cent.”
The four-storey civic centre is a short walk from Officer train station and will make the council accessible by rail, road and foot.
Further customer service improvements such as video conferencing are planned alongside a host of other technological advances.
“We are mindful that this move will be accompanied by an increase in public expectation,” Cr Moore said.
“In recent months, staff have been actively working to improve efficiency and deliver innovation.
“A focus on reducing paper usage, for example, has yielded savings of up to $50,000 in our print bill.”
As part of the purchase, the council also gains ownership and control over the public car park and other land holdings within the precinct.
“Officer is forecast to become a home for almost 30,000 people over the next 20 to 30 years,” Cr Moore said.
“As well as the civic centre, the new Officer town centre will provide services and support as well as a range of retail and recreational opportunities.
“It is an exciting time for the local community and for council.
“A decision to build a new civic centre is never easy and ensuring this move delivers a win-win for the community has always been at the forefront of our thinking.
“Having said that, I think most people in the community understand the reasons why council has made this decision.
“We are working really hard to ensure that history will show this to be a very good move.”
