Moorabool council wants to raise rates above the state government-imposed cap, and to put up its fees and charges, as it juggles to balance its books.
At a special meeting on March 23, councillors voted to ask the Essential Services Commission to lift rates by 3.5 per cent after a month-long public consultation on rating options.
This rate rise is one percentage point higher than the consumer price index limit [CPI] of 2.5 per cent introduced after a state government review of council rates.
During consultation, Moorabool residents were asked to consider three options – a 2.5 per cent rate rise cap, a 4.15 per cent rate rise cap or 3.5 per cent cap plus increases in user pays fees and charges.
Councillors Pat Toohey, David Edwards, Tom Sullivan and John Spain backed the cap at one per cent above the CPI.
Cr Sullivan said this increase would ensure services and infrastructure could be maintained and improved over the long term.
“I see this as a suitable transition arrangement,” he said. “Moorabool council is like a train moving forward and suddenly the brakes have been put on, if we accept the rates cap at CPI.”
Council ‘brainwashed’
Bacchus Marsh resident Russ Hendry, one of two public speakers, objected to a rates increase above the state-imposed cap.
“I was offended by the choices I was presented,” he said. “I feel that council has been brainwashed into believing that council cannot function. I believe there are other income streams that can be explored, and cuts that can be made within council spending.”
Mr Hendry produced his own survey of more than 1000 residents, in which more than half of respondents supported the rates cap.
Councillors Paul Tatchell and Tonia Dudzik supported the state-nominated cap. Cr Tatchell wanted to keep rates the same and increase fees and charges.
“We can’t keep leaning on ratepayers for everything that we need done,” he said. “It’s unfair that we keep shifting the weight around like this.”
Impact on services
Chief executive Rob Croxford said the cap on rate rises would impact more than 100 services and the $16 million capital works program.
“It is increasingly difficult to balance service delivery in growing communities and to meet the growing gap of need and actual spending on infrastructure such as sealed and unsealed roads and footpaths,” he said. “We will have to look at cutting services … projects and capital works spending will be severely impacted.
“Combined with federal assistance grants being frozen … rate capping could add a lot more pain in how we can provide for our community.”
Details: www.moorabool.vic.gov.au
