Ratepayers could face higher water bills, as Wagga City Council considers taking money from Riverina Water in a bid to ease its own budgetary woes.
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Mayor Greg Conkey said the move would go a long way to patch up council's yawning deficit, which was nearly $2 million this financial year and is expected to reach $4.5 million in 2020/21.
Wagga council had enjoyed a strong financial position for many years, however over the last few months its budget has sunk further and further into the red due to the coronavirus lockdown.
"These are indeed difficult times and none of us have experienced such as situation like this before and hopefully never again," Councillor Conkey said.
"We are looking at a one-off dividend from Riverina Water to assist not only us, but the other constituent councils."
The water company is run by Wagga council, Lockhart Shire Council, Greater Hume Shire Council, and Federation Council, and includes several Wagga councillors on its board of management.
One of them is Councillor Tim Koschel who opposed the idea on the grounds it would mean higher water bills for ratepayers.
Cr Koschel said residents had enjoyed an extended period of time without a water rate hike, but warned that could change if council went ahead and took money out of the company's coffers.
Riverina Water had even released a draft budget that proposed freezing water charges to support the community during the coronavirus shutdown, however Cr Koschel warned those plans could be scrapped if council goes ahead with its plan.
"If that has an on-flow effect back to the people and our ratepayers with increase in water rates and water usage charges to offset that money getting paid back in dividends, I don't think I can support that motion," Councillor Koschel said.
Councillor Rod Kendell threw his support behind the motion, saying Riverina Water was in such a strong financial position that it could afford a $1 million one-off dividend.
"Every year for at least the last seven years if not longer, Riverina Water has made a surplus in excess of its budgeted surplus," Councillor Kendell said.
"So I would argue there is a very, very strong financial case that Riverina Water could look at a one-off dividend."
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Councillor Paul Funnell, who is Riverina Water's deputy chairman, vehemently opposed the motion, saying it was the equivalent of "taking from one hand and giving it to another".
Cr Funnell said council should be cutting their own spending instead of "propping up an inefficient organisation," namely Wagga City Council, with ratepayer money.
"We [councillors] haven't looked in own backyards - what savings have we made?" Cr Funnell said.
"We can't control our income ... but we can control our costs, and I feel we haven't done that."
Cr Koschel asked council to defer the decision until the board members could discuss the matter with Riverina Water and the other councils.
The other councillors agreed to the deferral, and so Wagga council will revisit the motion at their meeting on May 25.