A bill to cap council rate increases at the consumer price index is before State Parliament, and Wyndham council is not impressed.
The state government is proposing to amend the Local Government Act to empower the local government minister to impose a cap on rate rises.
Any council seeking to increase rates beyond the cap would have to apply to the Essential Services Commission for special consideration.
Werribee MP Tim Pallas said the bill would also give the commission oversight of council spending to ensure ongoing compliance and enable it to monitor overall outcomes for communities.
Earlier this year, the government asked the commission to develop a framework to cap council rate rises. The commission consulted with councils and communities across the state in order to develop the framework.
“I’ve heard loud and clear that local residents expect greater accountability, a greater say and greater value for money,” Mr Pallas said. “And that’s what the Fair Go Rates system will deliver.”
But Wyndham council chief executive Kelly Grigsby has made clear the council’s opposition to the rate cap.
“It is disappointing this process has not taken account of the continued cost shifting and erosion of grants from state and federal governments,” she said, adding the council supported better community engagement in the budget-setting process.
But, she said, capping rates “does not reflect the impacts of rapid residential growth on municipalities such as Wyndham”.
Ms Grigsby said the council would continue to scrutinise its operations for efficiencies and increase its community engagement via initiatives such as community panels.
Mr Pallas said the rate capping would start in the 2016-17 financial year.
