Riverina Water has pushed back at Wagga City Council's plan to take money from the water company in order to ease its own budgetary woes.
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The idea was raised at Monday's council meeting but has since met with resistance from Riverina Water chairman and Lockhart Shire Council deputy mayor Greg Verdon.
Councillor Verdon said he was "sympathetic" to Wagga council's plight but ultimately opposed the move, saying it could mean higher water bills for ratepayers.
Riverina Water had released a draft budget that proposed freezing water charges to support the community during the coronavirus, however Cr Verdon said the motion could throw a wrench into those plans.
Cr Verdon said that money was intended for water infrastructure, especially given that Riverina Water had a backlog of projects that needed to be done.
"Whilst we're sympathetic to Wagga's cause, we want to be able to ensure we can maintain a strong capital works program," he said.
"With the projected population growth in Wagga to be 100,000, we're certainly going to need to provide additional infrastructure to meet that growth demand."
Wagga City Council general manager Peter Thompson said the move was prompted by council's growing debt, which was $2 million this financial year and expected to balloon to $4.4 million by 2020-21.
Council had enjoyed a healthy budget for many years, but Mr Thompson said it had fallen into the red due to the coronavirus shutting down pools, libraries, and other council facilities.
"In circumstances where we'll be pulling $4 million from somewhere in the community, maybe the trading entity [Riverina Water] is one of those places where we can pull that money from," Mr Thompson said.
Councillor Rod Kendall threw his support behind the idea, 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," Cr Kendall said.
"So I would argue there is a very, very strong financial case that Riverina Water could look at a one-off dividend."
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.
Council's original motion has been deferred and will be revisited on May 25.
Kenji Sato
Kenji Sato is a handsome journalist at The Daily Advertiser who enjoys writing flattering bios about himself in the third person. He can be contacted by email at kenji.sato@dailyadvertiser.com.au or by mobile on 0448 927 612.
Kenji Sato is a handsome journalist at The Daily Advertiser who enjoys writing flattering bios about himself in the third person. He can be contacted by email at kenji.sato@dailyadvertiser.com.au or by mobile on 0448 927 612.
