By ANEEKA SIMONIS
UP TO $150 million will be ripped from local councils in the next financial year, impacting vital services and jobs available in Cardinia Shire and the City of Casey.
The Andrews Government will soon force councils to cap rate rises at the level of inflation.
The Victorian Local Governance Association estimated councils will generate lower than expected rate revenue during the 2016-’17 financial year which will have a direct impact on council-run services and infrastructure.
Cardinia Shire Council’s general manager for Corporate Services Derek Madden would not comment on the expected impacts of the government-imposed caps.
“It is unclear how rate capping will impact. Once details are available as to how the system will be implemented, council will be in a better position to calculate any potential future impact,” Mr Madden said.
Ratepayers are expected to face a 5.5 per cent rate increase under council’s 2015-’16 draft budget proposed last month.
Local Government Minister Natalie Hutchins recently warned councils not to push up rates dramatically ahead of the rate cap.
She suggested council’s linking future job or service cuts to the planned 2016 rate cap was drawing “a very long bow”.
However, Shadow Minister for Local Government David Davis said it was inconceivable to believe local infrastructure and service would not be affected.
“Labor cannot simultaneously cap councils’ rates and cut councils’ revenue without adversely impacting on local jobs, services, infrastructure and communities,” Mr Davis said.
Casey Council, supporting Berwick, Harkaway and parts of Beaconsfield, is the largest municipality in Victoria, according to Chief Financial Officer Andrew Davis.
“The City of Casey is a complex multi-million dollar business, managing a budget of over $300 million annually, serving over 280,000 residents and delivering over 100 services,” he said.
While he would not comment on the impact of rate capping measures on council’s expected annual revenue until the conditions were finalised by the State Government, he projected significant losses to council-run services and projects.
“Had rates increases been capped at CPI in 2014/’15, the effect on the average residential ratepayer would have been a saving of about 80c per week, but the total effect would have been $4.7 million less in rates which would have had a significant effect on the projects and services able to be provided by council,” he said.
The City of Casey released their 2015-’16 draft budget earlier this week.
