Wyndham councillor Josh Gilligan has criticised the state government’s 3.5 per cent rate cap, saying the decision may bring household budget relief but will cause a ’maelstrom’ of cuts and a decline in asset maintenance.
Local government minister Melissa Horne announced the rate cap in December, stating the decision was guided by independent advice from the Essential Services Commission which recommended a cap of four per cent.
The state government opted to set the cap 0.5 per cent below the recommendation, saying it took into account cost of living pressure facing ratepayers.
Cr Gilligan told Star Weekly the community needed to brace for cuts to local government services and infrastructure projects, courtesy of the state government which had “ripped the guts“ out of local council funding.
“We’re being forced as a city to take on more housing and more people by the state and not be able to properly generate revenue to deliver basic government services and infrastructure to support them,“ he said.
“School supervisors, kinders, libraries and child and maternal health services are no longer safe as councils like ours are forced by the state to cut or entirely abandon services that will likely end up privatised,“ Cr Josh Gilligan said.
Wyndham chief executive Stephen Wall said Wyndham Council had no immediate plans to cut services but would review services in consultation with the community to ensure council is getting best value from what they do offer.
“We will also be undertaking a review of budgeted capital works projects in light of the increasing cost of construction,“ Mr Wall said.
“Where we anticipate that a project cannot be completed within reasonable cost estimates, the project may be deferred.
“Whilst Wyndham is in a strong financial position, the cost of meeting the infrastructure demand for a rapidly growing city has always been a challenge. Wyndham Council must fund new roads and buildings while also ensuring sufficient funds are available for maintaining existing assets.”
A government spokesperson said the state government has invested more than $45 million for the delivery of 30 “vital infrastructure projects“ across Wyndham since 2015.
“The rate cap of 3.5 per cent for the 2023/24 financial year takes into account higher inflation and the need to protect Victorians from uncontrolled rate hikes, while ensuring councils can continue to deliver vital community services,“ the spokesperson said.
“Each council is responsible for setting rates within the rate cap based on the needs of their community.”
Council says a decision on rates will be considered as part of the 2023-24 budge process, and a draft budget will be released for community consultation.
