Councils face belt tightening on rates again

FOR the fourth year in a row, local government is under a rate cap imposed by the state government.

According to Municipal Association of Victoria, the peak body for local government, while many councils have implemented numerous spending reforms evidence is emerging of under-investment in capital infrastructure and a reduction in discretionary community services.

The City of Ballarat has successfully delivered a series of budgets within the constraints of rate capping, currently 2.5 per cent, with the 2018/19 council budget set to remain within the limit.

Ballarat Mayor Cr Samantha McIntosh said, “The City of Ballarat remains concerned the state government expects councils to meet the costs of essential services like school crossings, libraries and maternal and child health.

“Without significant state and federal government investment we will struggle to meet either our vision or our purpose.”

Golden Plains Shire Mayor Cr Owen Sharkey said, “We support the MAV’s efforts to lobby State Government to investigate alternative and fairer means of funding rural and peri-urban councils.

“We are a large municipality with a relativity small population, and like many rural shires, the challenge of maintaining many hundreds of kilometres of roads and assets in our dozens of towns is serious.”

Golden Plains council is committed to keeping a tight budget and to making every dollar of their ratepayers’ money count.

Councils can apply to the Essential Services Commission for an increase in the rate cap percentage if they consider it insufficient by demonstrating a long-term funding need, supported by good long-term financial planning.

“Rate capping isn’t the issue – the issue is the inadequacy of the current funding models for the core, community-focused, essential work of local government,” said Cr McIntosh.

Cr Sharkey added, “The state government’s rate capping system puts serious pressure on rural councils such as Golden Plains to deliver the quality services and infrastructure our residents need, want and deserve.”

The state government introduced its Fair Go Rates System in 2015, limiting council rate rises to the CPI, in a bid to end the inconsistent increases experienced around the state and to encourage councils to budget for the long-term needs of their communities.