A shocked Hume council has been told it will have to pay $35 million to prop up a new Sunbury council.
The money, to be paid over 10 years, was one of the key measures announced by Local Government Minister Tim Bull when he released the Sunbury-out-of-Hume panel report last week.
But Hume mayor Casey Nunn said the council would explore “all legal avenues”, including a possible injunction, to block Mr Bull’s move.
The main points of the Sunbury secession plan are:
• Hume will retain its biggest asset Melbourne Airport – but pay $35 million to Sunbury as ‘compensation’.
• Administrators and an interim chief executive will be in place in Sunbury from July 1 next year until council elections in 2016.
• All Hume councillors will remain in place until 2016.
Cr Nunn said she was “dreadfully shocked” at the proposals and said the council was exploring all options to counteract them.
“The ability of Sunbury to become a sustainable city is beyond reality,” she said.
“There have been at least four staff briefings and a lot of staff are very angry; they want to work for Hume.”
The state opposition is also considering its options. “Labor has consistently said we did not oppose creating a new Sunbury council, provided it was viable,” a spokesman said.
“We’re concerned the report shows this proposal isn’t viable in the short to medium term.”
Sunbury Residents Association president Bernie O’Farrell said the association wanted to see the airport in the new Sunbury council, but agreed it was a reasonable compromise for Hume to pay $35 million.
“The new council would also receive money from the sale of the Racecourse Road development, worth about $25 million,” he said.
“The government has accepted that is an asset that belongs to Sunbury.” Mr O’Farrell said residents were excited about Sunbury standing alone.
The boundary between Sunbury and Hume will be Deep Creek and it will take in the town of Bulla.
Diggers Rest residents will be surveyed on whether they want to join Sunbury or remain in Melton.
Mr Bull said there were only three points in the report the government did not agree on.
They were a suggested cap on rates, the name of the new council, and the date on which Hume paid Sunbury’s compensation money.
– with Helen Grimaux
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