Budget sessions rate a second look

Gloria O'Connor is concerned Cardinia Shire Council may apply to exceed the rate cap.

By KATHRYN BERMINGHAM

THE Cardinia Shire Ratepayers Association has called for transparency from Cardinia Council, amid concern that a series of community brainstorm sessions may be used to justify a future rate rise.
Cardinia Council’s ‘Big Budget Brainstorm’ forums begin today and allow the opportunity for residents to put forward their opinion on how the council prioritises its spending.
But ratepayers group president Gloria O’Connor fears the events may be used to support an application to exceed a legislated rate cap that could be in place by next financial year.
On 21 October, the Andrews Labor Government tabled legislation requiring councils to adhere to a state-wide cap on rates, calculated using the Melbourne Consumer Price Index Forecast.
A clause in the proposed law specifies that the Essential Services Commission may accept applications from local councils to set rates above the cap; however the council would need to demonstrate that the increase was warranted and had the support of the community.
Gloria said on Wednesday 4 November that ‘Big Budget Brainstorm’ could be used as evidence that the community supported council exceeding the cap.
“We’ve never had something like this before, and it makes me wonder what’s prompted it,” she said.
“I know the legislation requires that if they are going to make rates higher than the cap, they have to have strong community support, and they have to work with the community.
“I can’t help but think perhaps this is the motive of holding this consultation.”
Cardinia’s Corporate Services general manager Derek Madden said the series of brainstorming sessions were an extension of a public information session on the draft budget, held by the council “for a number of years”.
“The Big Budget Brainstorm is an extension of these sessions to improve how the council consults with residents in relation to its budget,” he said.
“The council hopes the Big Budget Brainstorm will generate a constructive conversation about the issues, opportunities and challenges we face in Cardinia Shire.”
He added that the council would formulate its response based on Minister for Local Government Natalie Hutchin’s response to the draft policies of the ESC (now tabled in Parliament).
“Prior to formulating a position on rate capping, the council waited for the Minister for Local Government’s response on the draft policies of the Essential Services Commission; this was received in recent weeks,” he said.
“The council’s Big Budget Brainstorm was arranged prior to receiving the response from the minister.”
Cardinia Shire Council has not yet decided whether it will apply to exceed the rate cap for the 2016/17 financial year.