Wyndham residents are divided on the issue of rate capping but believe the council should be tightening its belt and looking for other funding sources before increasing rates above inflation.
The council convened three community panels in November and December to get feedback on the state government’s decision to cap the amount councils can increase municipal rates to the rate of inflation.
This is determined by the consumer price index (CPI). A rate rise cap of 2.5 per cent will take effect for all Victorian councils from July 1.
A report from the community panels found:
- Some residents want the council to stay within the rate cap for at least the first year to see what eventuates. Others said they would accept a slightly higher rate rise for services to remain the same
- Residents want the council to look for efficiencies and alternative revenue sources before looking to increase rates above the CPI
- Residents believe the council should hand back services that should or could be the state or federal governments’ responsibility
- Residents do not want “ill-informed” cuts to services or increases to fees and charges.
Cr Marie Brittan said the community panels not only gave insights into community wants and needs but also gave residents a glimpse of the significant challenges that Wyndham council faces as a result of the rate cap.
“They now know the frustrations we experience. They know how some of our costings work.
“They now understand the range of services we provide,” Cr Brittan said.
“They can understand why we have to make these really tough decisions.”
The council will use the feedback and recommendations gleaned from the panels to guide its own decision-making in managing the impact of rate capping.
Councils have until March 31 to submit applications to the Essential Services Commission seeking rate rises that go beyond the CPI cap. Wyndham is one of 21 Victorian councils that have indicated they may apply for a rate increase above the cap.
But Wyndham council chief executive Kelly Grigsby said the council had yet to vote on whether it would definitely go ahead with its application.
