mmg.com.au

Strathbogie Shire Council says it has taken ‘‘extreme measures’’ to slash the $1.26million defined benefits superannuation shortfall it faces.

It says its has found $750000 of savings in its mid-year budget review, largely from a $1.5million reduction in capital works due to grant applications being unsuccessful. These mostly relate to projects in Euroa and Violet Town.

The bill arises from the need to pay pensions out of the Vision Super fund, a defined benefit plan that dates back 70 years and that guarantees participants and their spouses an annuity for life.

Mayor Deb Swan said the council wanted to clear the debt this financial year ‘‘so we can take advantage of the discount offered if paid by February’’.

‘‘This will give the ratepayers better value for money and makes good fiscal sense,’’ she said.

‘‘As the only level of government required to do this, we will continue advocating to higher levels of government to find ways to assist us with any future top ups which may impact on our long-term planning and disadvantage the communities we serve.’’

Acting chief executive Phil Howard said: ‘‘We are reviewing all services to identify savings, while still maintaining the service levels adopted by the budget.’’

As the council had already set aside $400000 in the 2012-13 budget towards the shortfall, the extra money left just $114000 to be sourced.

‘‘Council officers have now been directed to find the remainder of the funds from the current operational budget,’’ Mr Howard said.

Mitchell Shire’s bill is about $2.8million, with just $250000 accounted for in its budget. The Municipal Association of Victoria has been lobbying to have local government put on the same level as its federal and state counterparts, which pay the benefits as they become due, rather than in advance.