Melton council’s draft budget has put the spotlight back on the state government’s commitment to introduce a “fair” rate capping system.
The government’s Fair Go rates cap is expected to come into effect for the 2016-17 budget to “ensure a fair go for all ratepayers”.
Watts ward councillor Lara Carli was last week the only councillor to oppose Melton’s draft budget for 2015-16, maintaining her support for capping rates at the consumer price index (CPI).
“Since I’ve been on council, I have opposed rate increases above CPI levels,” Cr Carli said.
“I’m a strong advocate for capping rates as it’s the only method to give our residents some financial relief through the council”.
The Essential Services Commission (ESC) is running extensive community consultation with councils and ratepayers on the Fair Go rates proposal.
Melton chief executive Kelvin Tori and mayor Sophie Ramsey, who have been involved in the consultation, said the council would make a submission to the ESC about issues unique to growth councils such as Melton.
Mr Tori said the council did not support capping rates at an artificial figure.
“CPI is not a good indicator when the core business of council is really about delivering services, which relates more to wage growth and less to CPI, and delivering infrastructure, which relates more to contract index rather than consumer price index,” Mr Tori said.
He said the council’s submission would draw on the fact that, as a growth council, Melton needed infrastructure in place before its community was fully developed.
“We have the need to fund that and therefore it is not possible to fund it by a CPI-cap rate increase.”
Cr Ramsey said every council was different and a “one size fits all” approach would not suit all municipalities.
“We will advocate for this community as best we can but, at the end of the day, it’s very hard to put a blanket CPI rate cap right across because every council is fundamentally different.”
Cr Ramsey said that council was willing to work in partnership with the ESC and everyone involved to develop a suitable strategy.
According to data from the Australian Bureau of Statistics, capping rates at the consumer price index, based on December 2014-15 figures, equated to a 1.7 to 2.2 per cent rise, about half Melton council’s proposed increase of 4.4 per cent.
Melton MP Don Nardella said the Fair Go rates cap would encourage councils to focus on things that mattered most to communities.
Find out more
Local Government Rates Capping Framework Review
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City of Melton budgets for the long haul
