Wyndham council will try to raise its rates beyond the 2.5 per cent cap imposed by the state government.
At a special meeting last week, councillors voted to seek a two per cent variation to the government-decreed rate rise limit, which sets the Consumer Price Index for the 2016-17 financial year as the limit.
If it wins approval from the Essential Services Commission, Wyndham council will raise rates by 4.5 per cent in its coming budget.
Mayor Adele Hegedich said Wyndham was already facing an annual infrastructure funding shortfall of about $16 million due to declining government grants and insufficient developer contributions.
Cr Hegedich said that if Wyndham was unsuccessful in its application, the council would face a $4.4 million funding gap in the next financial year and $36 million over the next four years.
“The cap of 2.5 per cent might well be appropriate for other councils that have benefited from investment from other levels of government in roads and public transport over the past 50 years.
“But we have major infrastructure projects that are required now,” Cr Hegedich said.
4.5 per cent rise ‘workable’
Cr Marie Brittan said a rate increase of 4.5 per cent would be “workable”.
“The government built in an option for councils to apply to the Essential Services Commission for a variation, and this was obviously intended for councils in growth areas,” Cr Brittan said.
“If we didn’t apply for a variation, I would hate to think what it would mean for our residents as services would definitely be cut to the neediest in our community.”
Councillors Heather Marcus, Intaj Khan and Peter Gibbons voted against asking for a rate rise variation.
Cr Khan recommended the council try to operate under the rate cap for at least two years before considering an increase.
Chief executive Kelly Grigsby said the council would submit its application to the ESC before the end of this month.
“A lot of councils will be taking a different approach, a bit of a wait-and-see approach …not wanting to tackle this issue in an election year,” Ms Grigsby said.
“I think this goes to the fundamental point of good governance at this council.”
