Wagga City Council could spend almost $10 million in the next financial year on upgrades at the airport despite a dilemma over who it should be owned by.
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Council's forecast expenditure includes $85.7 million in capital project allocations in the 2021-22 financial year with pending funds for airport renovations, including redeveloping the terminal.
However, council general manager Peter Thompson said council would be "having a long hard look" at its involvement with the airport as it looks to potentially cut costs in the near future.
Council is expecting a balanced budget for the 2021-22 financial year, but has forecast a deficit for nine consecutive years after it.
Mr Thompson has said Wagga is in an unusual position because council has to rent and operate an airport it doesn't own, while most regional airports were gifted to their local governments.
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The Department of Defence owns Wagga Airport, where it also operates the RAAF Base, with a section leased to council on a 30-year agreement that expires in 2025.
In the next financial year, Wagga City Council is expected to lose $347,000 on the airport. Losses on the airport made up more than $3 million of the $4.4 million hit to council's finances caused by COVID-19.
Mr Thompson said council would reconsider the airport in the next year and potentially make a decision before the 2022-23 financial year.
"We'll continue with the current approach to the airport because we are in discussion with government on what our intentions are at the end of the lease," he said.
"I certainly have a preference for the airport to continue to be operated by the people rather than have a private entity move in there after the expiry of our lease, but we are in those discussions and we will work that out over the next 12 months."
Member for Riverina Michael McCormack, whose ministerial portfolio includes transport and regional infrastructure, said the airport leasing arrangement was the remit of the Department for Defence.
"I will continue to work with the council to find the best outcome for the Wagga community," he said.
He said council had secured more than $4 million for planned capital works at the airport.
"Any funding proposals by the council will be considered, providing the proper process is followed," he said.
Catie McLeod
Catie is a reporter at The Daily Advertiser covering health and Wagga City Council. You can contact her on c.mcleod@dailyadvertiser.com.au or 0475 819 651.
Catie is a reporter at The Daily Advertiser covering health and Wagga City Council. You can contact her on c.mcleod@dailyadvertiser.com.au or 0475 819 651.
