Ratepayers may foot $2m bill for Iluka's Sewerage Scheme

Sep. 21, 2010 - Ratepayers face the possibility of footing an interest bill of almost $2 million if Clarence Valley Council has to wait until 2013 to receive NSW government funding for the Iluka Sewerage Scheme.
Councillor Ian Tiley told last week's Civil and Corporate Committee meeting if council had to borrow the 29.4 percent of the project cost promised by the government, ratepayers would to pay the interest.
"Council should wait on the minister and put the case that the government and not the sewerage ratepayers of this council meet the interest bill", he said.
The project is estimated to cost $41 million, Cr Tiley said, and if council had to borrow the government's contribution of $12 million, the interest could amount to $1.96 million.
Mayor Richie Williamson said yesterday this was not the case.
"Tenders will be ultimately letting council know what the project will cost",he said.
"If there is an extra cost council will have to look at its financial plans to absorb (them)".