As you are aware, Armidale Dumaresq Council’s (“ADC”) financial position is precarious. The Review of Local Government Service Delivery in the New England Area (“Kibble Report”) in 2010 found that “Armidale will continue to struggle to maintain and replace assets and build reserves to an acceptable level and at the same time provide an appropriate and cost effective level of service to its community”. It cited a Forsyths report, which had concluded that “the council is not financially sustainable without significant reform or improved revenue generation capacity”.
To 2010, ADC has recorded operating deficits after capital grants in three of the last five financial years with a cumulative loss of $10.14 million. In 2008/09, ADC recorded an operating deficit of $1.223 million, including the early payment of the first instalment of the Federal Government financial assistance grant (FAG) for the 2010 year of $0.956 million.
Furthermore, Kibble noted that the level of debt currently carried by ADC is relatively high in comparison to the other New England area councils. The council has been cautioned by Forsyths to carefully address the issue of long term debt, warning in its review of NESAC that ADC has limited capacity to borrow in the short term.
In recent weeks, the General Manager has written to all ratepayers admitting the poor state of ADC’s infrastructure, and proposing a 9% increase in rates. ADC has also stated that it is unable to fund rehabilitation works at Dumaresq Dam.
Against this background, the Gara Valley Environmental Preservation Association (GVEPA) draws your attention to the new landfill, proposed for a site approximately 12 kilometres east of Armidale, on the Waterfall Way. By its own estimates, ADC believes capital costs in the first two years of this project will be in excess of $16 million and over $4 million for each additional cell. This excludes land purchase costs and closure costs for the existing landfill. This is equivalent to a minimum of $275 per rateable household per annum. GVEPA estimates total capital costs will be closer to $40 million. This will have to be funded with additional debt, which GVEPA believes will cost in excess of $1 million per annum to service, let alone re-pay. In addition, as ADC has proposed an environmentally sensitive location adjacent to the World Heritage-listed Oxley Wild Rivers National Park for the landfill, significant additional and costly safeguards were required by NSW State authorities to be incorporated in the final design.
GVEPA believes this proposed expenditure is not defensible, in light of the better, and more cost-effective alternatives (e.g. shipping waste to Tamworth and/or working with the proposed Guyra biofuel facility), which exist and would then extend the life of ADC’s current facility on Long Swamp Road. The additional time would allow for a long-term, lower-cost solution to be developed.
The more than 100 members of GVEPA join me in requesting that you indicate your position regarding the construction of the proposed landfill, particularly in light of the alternatives. Would you kindly reply to this e-mail address [gbfox@ozemail.com.au] your views on this matter? I will then ensure that these are shared with our members.
GVEPA would be pleased to provide more detailed information, or meet with you to discuss this matter. Please don’t hesitate to contact me on (02) 6775 3912.
Geoff Fox,
President, GVEPA
