Shifting the cost of insuring town halls onto communities could cost thousands of dollars, but Wangaratta Council has insisted the decision is about safety, not money.
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Greta-Hansonville Hall hosted Tuesday’s council meeting for committee members to hear it was one of 25 buildings to be cut from the council’s insurance responsibility.
The council was warned that because the halls and sporting facilities were on land owned by the Department of Environment, Land Water and Planning, insurance companies could reject any claim it made.
Chair of administrators Ailsa Fox said the council was looking for a solution.
“If this (Greta-Hansonville Hall) was to burn down tomorrow for example, would our insurance honour it? With what we’ve been told, they probably wouldn’t honour it,” she said.
The Greta Sporting Complex insurance bill, previously paid by the council, was $590 per year.
Independent quotes obtained by the committee ranged from $3600 to $6000.
Complex committee member Tony Tanner said massive costs were “untenable”.
“It’s not as simple as passing it onto user groups, we’re all volunteers,” he said.
The total council savings would equal $8000.
Administrator Irene Grant said the council could not be responsible for land it did not own.
“Council needs to be mindful about the risk and it’s not just about the dollars, in fact, it’s not about the dollars, it’s about the risk,” she said.
Greta West resident Lorraine Griffiths asked about a possible loophole to refund insurance costs with a council grant, but executive officer Brendan McGrath said it did not fit the criteria.
“There has to be a better solution than you pulling out and leaving the communities to find whatever funds are necessary for the insurance,” Ms Griffiths said.
The council resolved to work with DELWP and community groups to find the most sustainable outcome and the lowest insurance price for communities.
The next insurance payments were due after July 1.