Guyra Shire Council will proceed with the construction of a thirty-two bed aged care facility, despite concerns about the long term financial burden it may impose on ratepayers.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
It brings to an end four years of debate about whether to refurbish the existing Kolora Homes or construct a new building which would better meet the future needs of aged care in Guyra.
Plans for a new purpose built aged care facility were first unveiled in October 2012 with tenders called and contracts drawn up. The Joint Regional Planning Panel gave the go ahead for construction in February 2013, however the departure of General Manager David Cushway before contracts were signed meant the project did not proceed.
Since that time Council has undertaken a number of reviews and entered into negotiations with ‘Not for Profit’ organisations to take over the build and management of the facility. Although they had talks with two interested parties, they failed to find a partner for the project. Instead they have reassessed and revised the 2012 plans and will now undertake to build the facility themselves.
The project is expected to cost over $6 million dollars. Funding will come from Federal grants of $2m, Kolora Reserves of $1.37, Kolora Bonds $755,000 (to be repaid) and asset sales of $1m. Council will need to borrow $1,125,907 to complete the project.
Aware of the financial implications of their decision, Councillors were faced with a difficult choice when the matter was put before the monthly meeting on Monday. While the capital expenditure is considered within Councils means, the ongoing expenses and expected operational losses raised concerns. The estimated loss in the first year is $400,000, which would reduce to $300,000 a year once the existing Kolora building is sold.
“Aged care is something that is definitely needed,” Cr Dot Vickery said. “If we don’t go ahead, we will eventually lose the ability to provide aged care.”
Cr Murray was passionate in his support for the project, saying these things are part of who we are as a community.
“If we were to be simply bean counters everything would go,’ he said. “If we don’t support Kolora we should withdraw support of other losses. Yes it is a financial burden, but there are other benefits to the community.”
Councillors Martin and Heagney raised concerns over the envisaged operating losses, particularly as they relate to the current Fit for the Future agenda.
“We don’t want to leave a legacy of indebtedness,” Cr Martin said. “However it is very evident that the community want this – we take it on because we have a heart for our community.”
The final vote was 5-1 in favour of going ahead with the new aged care facility. Cr Heagney voted against the motion, saying it would be an unwise business decision.
“If you were to vote with your heart you would go ahead every day of the week,” he said. “The community want it, but it will be a hard thing to turn around.”
Construction is expected to commence in August with a completion date expected by the end of July, 2016.
