Wyndham council would lose more than $64 million in the next three financial years if state Labor was elected to government in November and followed through on its plan to cap council rates.
Victorian Opposition Leader Daniel Andrews has vowed to cap council rates in line with the Consumer Price Index if his party wins the state election in November.
Mr Andrews said the measure would help cut wasteful spending at councils and ensure that ratepayers got value for their money.
But figures released last week by the state government show that if the plan went ahead, Wyndham would be the hardest-hit outer suburban municipality, missing out on $64,650,340 in the 2015-16 to 2017-18 financial years.
The figures, provided by Local Government Victoria, are based on forecast rates and changes in revenue.
Wyndham acting chief executive Kelly Grigsby said capping rates would cut funding while creating extra work.
“Wyndham City would be concerned about any changes to the current system of each council determining its own rates and charges, as it may jeopardise our ability to provide adequate local services and infrastructure,” Ms Grigsby said.
“Under the Labor Party proposal, councils are able to raise rates and charges above the level of CPI by applying to the Essential Services Commission. This would require an increase in workload and paperwork for a potentially similar outcome to the current system.”
But Tarneit Labor MP Tim Pallas said the council needed to show what it was spending ratepayers’ money on to justify a rates increase above CPI.
“Council rates have increased over CPI for every ratepayer in Wyndham, and council forward estimates show rates will increase at 5.5 per cent a year – more than double CPI,” Mr Pallas said.
“No tier of government … should be able to place such an increased burden on Wyndham residents’ cost of living without justification.”
