Wodonga to use hardship policy not funds for COVID help as North East councils record surpluses

Wodonga Council was one of two local government areas that did not increase rates last year as well as giving rent relief and pausing debt recovery.

But in 2021-2022, council will use hardship policies to determine support in lieu of a dedicated package for COVID-19 relief.

"We have a range of hardship policies that allow us to maintain the best course of support for each situation," a council spokeswoman said.

"We are working with Regional Development Victoria to be 'project ready' when funding becomes available to provide stimulus to the local economy.

"The Victorian Government's hospitality funding will continue to be rolled out with capital projects using local suppliers where possible.

"Wodonga Council continues to lobby state and federal governments to increase and expedite federal assistance grants to allow councils to provide targeted rate relief."

Wodonga did not follow other councils like Albury and Indigo in allocating funding to COVID recovery ($500,000 and $110,000 respectively).

Albury mayor Kevin Mack told The Border Mail the twin city councils had taken a different path on recovery.

"Last year they offered a zero rate rise, which isn't ideal generationally because it impacts upon your budgets for the next 10 to 15 years," he said.

"Their position is what they choose to take.

"The difference though, is that the government of Victoria seems to be doing a lot more for their regional councils.

"Whereas in NSW, I would say it's a little bit different; it's a bigger state and there's only so much money to go around ... there isn't a lot coming out of Macquarie Street.

"The councils (in NSW) have to supplement that shortfall and that would explain a lot of the reasons why Wodonga don't have to, because their government is doing a lot more in terms of offering support for businesses, for families and their communities."

Indigo mayor Jenny O'Connor agreed the Victorian government was "making a genuine effort" to support regional councils.

"There are things they could improve on; one of the key issues is that indirect impact has to be looked at.

"If they shut down Melbourne, that's our visitor economy smashed.

"That's a theme for improvements for governments right across the board.

"Having said that, I've put that message out loud and clear and there are times where they're showing they're listening."

Indigo's $110,000 spend has been set aside so council can "liaise with communities about what they think will be supportive".

"It might be for an event, it might be for improving some infrastructure - whatever it is that communities think will really help them with their recovery," Cr O'Connor said.

"We're also applying for government grants - at the moment we're applying for over $4 million dollars for the Rutherglen wine cycle loop.

"We're always looking for grants for those bigger-dollar-spends on major projects.

"Despite some people's views that we shouldn't be focusing on cycling and tourism, in fact that is the thing that will help us recover - it's what drives our economy."

Councils' approaches to pandemic recovery have been varied, according to Mary-Ann Brown, Rural Councils Victoria Committee chair.

"All councils have some form of hardship policy and in addition to that, they've also taken different approaches," she said.

"At Southern Grampians, we set aside some of our rate income for special COVID assistance.

"The state government as well as the federal government have provided financial support.

"The state's Working for Victoria scheme has been a really positive experience for many councils, with people going on to become council employees.

"We haven't had any indication (of whether it will be repeated); we've commissioned a report to evaluate it and we'll certainly be having further discussions with the government."

Cr Brown said it was a "mixed picture" across councils with impacts from bushfires and the pandemic, but also record tourism between lockdowns.

"We are also seeing people moving to rural areas, which is having some impact in terms of property valuations," she said.

IN OTHER NEWS:

"The longer-term concern is, by and large many of our councils are not experiencing population growth and the two major sources of income are rates and grants - primarily financial assistance grants from the Commonwealth.

"Rural councils are responsible for a pretty significant part of the state road network; when bridges can cost $500,000, that's significant in a $15 million capital works budget."

Cr Brown said councils were integral parts of regional communities and governments needed to continue their support.

Some key figures from North East council budgets:

Alpine: 1.5 per cent rate increase compared with last year's increase of 2 per cent. $19.6 million to be raised through rates and charges. Projected surplus is $6.6 million.

Indigo: 1.5 per cent rate increase compared with 2 per cent last year. $18.2m to be raised through rates and charges. Projected surplus is $4.9m (increased from $440,000 in draft budget, largely due to grant income received).

Wodonga: 1.5 per cent rate increase compared with a zero per cent rise last year. $48.4m to be raised through rates and charges. Projected surplus is $8.8m.

Wangaratta: 1.5 per cent rate increase compared with 2 per cent last year. $36.6m to be raised through rates and charges. Surplus of $10.17 million (underlying operating deficit of $173,000).

Towong: 1.5 per cent rate increase after a zero per cent rise last year. $9.4m to be raised through rates and charges. Surplus of $1.2 million.

Alpine: "Largest capital expenditure in its history" totalling $14m, supported by significant government grant funding of $8m. Significant projects include the Mount Beauty Airport Upgrade ($3m), Dinner Plain Activation Phase One ($1.2m), the Great Valley Trail ($1.7m) and the Dargo High Plains Road Renewal ($1.2m).

Indigo: Also a record capital works program, of $16.5m. $1 million of borrowings for the Epic Mountain Bike Trail project, matching federal government. Significant projects include the Chiltern Community Hub ($2.05m), recreation plan implementation ($480,000), Courthouse Kelly Trials ($721,000) and completion of the Beechworth-Yackandandah Rail Trail ($1.85m).

Wodonga: $23m capital works program including $6m in infrastructure renewals. Projects include Baranduda Fields Stage 1 ($5.2 million), roads renewal ($2.8 million), a major roads LED street lighting upgrade ($1.2 million) and stage two of the Belvoir Park playground ($294,000).

Wangaratta: A capital works program of $27.29m includes $3.46m in renewals, $1.66 million on resheeting gravel roads and $1.60 million for the Bowser landfill.

Towong: $26.5m capital works program supported by $13.2m in grant funding from the state and federal governments. Projects include the Colac Colac caravan park ($2.1m), stage two of the Tallangatta holiday park ($660,000), Corryong stock route ($2.5m) and the Corryong CBD ($1.5m).