After deferring the decision for a month, Moorabool council has elected not to apply for an exemption to the state government’s 2024-25 rate increase cap of 2.75 per cent.
The state government announced in December a 2.75 per cent rate cap that it said was based on the Essential Services Commission’s recommendation and is equal to the forecast Consumer Price Index for 2024-25.
Councils can apply for an exemption to this cap which, after lengthy debate, council decided not to do at a meeting on March 6.
Councillors Rod Ward and Tom Sullivan voted against a council officer’s recommendation to accept the cap.
Cr Ward said he was voting against the recommendation to draw attention to his position that councils are facing increasing financial pressure.
“I don’t want to impose an additional rate increase on the ratepayers of the Moorabool Shire Council,” he said.
“I’m voting against the recommendation to not apply to simply bring to the attention the effect of rate increases that have been below CPI over the past few years.
“Cost shifting from the state and federal government to LGAs has led to declining cash reserves for councils, council costs are increasing increasing faster than CPIs, construction costs continuing to rise and total borrowings have increased right across the local government sector.
“I accept that rate capping ensures accountability but councils must be permitted to match revenues to meet increased responsibilities and to meet community expectation and needs…”
Councillor Moira Berry said that while she agrees councils are struggling with financial pressure, ratepayers are also suffering.
“Our officers have told us that it can work and we have a CEO who is an expert accountant… and I trust that we are going to make it through the neck next year,” she said.
“This is not sustainable going forward. Rate increases need to happen but I don’t think this is the right time.”
Councillor Tonia Dudzik said councillors have a responsibility to ratepayers to keep rates low and affordable.
“We’ve had many councillors make election promises to keep our rates low and we’ve got a responsibility to keep that,” she said.
“We have a responsibility to families, pensioners, retirees and businesses to keep their rates low.”
Liam McNally
