Wyndham council will lose more than $5.7 million in federal government funding slated for essential services and community infrastructure.
This month’s federal budget included a hold on indexation for financial assistance grants given to local councils to fund infrastructure and services such as roads, libraries and childcare. It’s the second year in a row the federal government has frozen indexation.
Wyndham will take the second highest cut in Victoria behind Greater Dandenong, which will lose $7.8 million in funding.
Wyndham advocacy director Bill Forrest said the council was “very disappointed” with the federal government’s decision to freeze indexation for the second year running.
“This continues the long-term trend by federal governments of not recognising population growth and expenditure increases to provide services,” he said.
“Financial assistance grants are not keeping pace with growing costs and population. The same applies to grants for libraries, school crossing supervisors, maternal and child health, and aged and disability services.
“In 2014‐15, Wyndham City received $12.3 million. This was an increase of only 2.1 per cent on the prior year despite our growing costs and population growth of five per cent.
“For the 2015‐16 financial year, we are expecting $12.6 million … well below the amount required to keep pace with our growing population and associated expenditure.
“Council is trying to protect services from cut-backs but to do so it needs to increase rates and charges.”
The Municipal Association of Victoria is also calling on the government to lift the indexation freeze.
Lalor MP Joanne Ryan said Wyndham was not getting its fair share.
“The flow-on from these cuts will hamper the ability for Wyndham council to service our community and develop and maintain pivotal critical infrastructure,” she said.
“That will impact on Wyndham City council’s ability to address some of the internal congestion issues that we have across the city. For us here, the growing time it takes for us to get across our city, to access public transport, has real impacts on families.”
