More Funds for Sewer Project

May 30, 2008: Bega Valley Shire Council has secured a further subsidy payment of $7.65 million from the State Government for the Bega Valley Sewerage Program.

The Mayor, Cr Tony Allen, said Council had been seeking recognition from the State that the subsidy for the sewer program should be paid at the level established in the initial agreement with the State. 

"After the contract for the program was signed, State subsidy levels were reduced significantly and there was a risk that Council and the ratepayers would be funding a higher proportion of the costs than initially anticipated," he said.

"However, the State Minister for Water, Nathan Rees, has accepted Council's request for the higher subsidy levels and he advised this week that a further subsidy payment of $7.65m would be made this financial year.

"There will be a further smaller payment next financial year when the program is finalised.

"The additional subsidy means that Council's residential sewer charge will remain the same for the 2008-2009 year as it is for the current financial year and that Council will not need to take out further loans to pay for the sewer program," Cr Allen said. 

"Council greatly appreciates this decision by the Minister, taken at a time when our financial resources are stretched and hard decisions are having to be made with regard to Council’s infrastructure and services."

Construction for the $70 million Bega Valley Sewerage Program is due to be completed in July.