Geelong wants to exceed rate cap

THE City of Greater Geelong says it needs to lift rates above the rate cap to lower debt levels and fund vital infrastructure in growth areas.
The city has formally applied to the Essential Services Commission (ESC) to exceed the state government’s new 2.5 per cent cap and set the rate increase for 2016/17 at 3.5 per cent, which would raise an extra $1.6 million in revenue.
Greater Geelong mayor Darryn Lyons said the draft 2016/17 budget was created with a 2.5 per cent cap in mind and achieved a “wafer-thin surplus”.
If the application is successful, the extra revenue will reduce proposed new loan borrowings to $22.7 loan balance of $93.3 million.
The council’s application to the ESC notes that not reducing debt could affect the council’s ability Clifton Springs sports precinct.
Strategy and performance general manager Dean Frost said Geelong, as a growth municipality, suffered from “the double-whammy effect” of having to renew infrastructure in existing suburbs as well as support new developments.
The council is waiting on the outcome of a Commission of Inquiry into the City of Greater Geelong – one media report says the commission Cr Lyons said it was “business as usual” in the meantime and he wanted to complete his term as mayor.
The commission’s report is now being considered by the state government and is not expected to be “I can’t comment on a report I haven’t seen,” Cr Lyons said.
“I’m proud to sit here today in front of Geelong’s leading media to say I campaigned on vison, passion and change and I’ve delivered on vision, passion and change throughout the City of Greater Geelong.”