Melton council was one of the hardest hit local governments in Victoria last year when it ‘lost’ federal government funding.
The Victorian Grants Commission tabled its annual report in State Parliament this month, showing significant shortfalls to council funds.
Melton lost more than $12,000 in the past financial year, just behind Brimbank ($13,000), Wyndham ($13,000), Casey ($17,000) and Geelong ($18,000) councils.
The commission’s report also stated growth areas, including Melton and Moorabool, would lose tens of thousands of dollars from grants in the 2015-16 year.
Melton chief executive Kel Tori said federal government cuts resulted in a “marginally” higher rate increase than would have been the case this year.
Mr Tori said rates had to be increased by 4.2 per cent instead of 3.9 per cent.
“In the long-term financial plan, it has impacted to a minor degree the extent of works council is able to undertake in each year,” he said.
Mr Tori said while federal revenue to the state increased, money to local governments through the Grants Commission declined.
“Council sees this as an extremely unfair burden on council to generate revenue from within its community.
“The cumulative impact of [federal funding cuts and rate capping] is an inevitable reduction in provision of infrastructure and services over the long term, but council must simply deal with the challenges presented to it,” he said.
Meanwhile, Moorabool council lost almost $5000 in federal cuts in the same year.
Chief executive Rob Croxford said he was also concerned about the impact of rate capping on top of federal funding losses.
“Future budgets and service delivery will be increasingly difficult,” Mr Croxford said.
“In relation to the local roads grants, Moorabool shire has been impacted by changes in the Victorian Grants Commission funding formula, which has impacted the total level of grants received. [These] grants do not use population, therefore any growth in population will not have an impact on local road funding.”
The federal Minister for Major Projects Paul Fletcher said: “It’s not true that Commonwealth financial assistance grants to Victorian councils have been cut.
“This year, Victorian councils will receive $539 million from the Australian government, an increase on 2014-15 levels,” he said.
