By Cam Lucadou-Wells
CASEY councillors have provisionally endorsed a push towards raising rates above the two per cent rate cap this year.
At a 20 December meeting, a majority of councillors endorsed a statement that the State Government-imposed cap would lead to a shortfall in council services and infrastructure.
They supported council officers continuing to plan for a possible submission for a rates cap variation.
Mayor Sam Aziz said no formal decision had been made on whether the council would apply for a variation.
“However the government’s announcement that rate rises will be capped at two per cent leaves us few options if we are to maintain the current level of services and infrastructure.
“We are facing a cumulative black-hole of around $200 million over the decade to 2025.”
At the meeting, Crs Geoff Ablett, Steve Beardon, Rex Flannery and Tim Jackson dissented.
“The previous council spent a significant amount of money on a submission for a rate rise exemption last year and it was knocked back,” Cr Jackson said.
“I suspect it will be knocked back again.”
Cr Jackson said he expected Casey’s soon-to-be-convened People’s Panel of 60 residents would also dismiss the need for a higher rates rise – even after being briefed by the council on its budget constraints.
“I’ve been educated on the issue by the council too but I haven’t changed my mind.
“You shouldn’t be holding the residents to ransom and say if you don’t support a rates rise, these are the things you’re not going to get.”
Cr Jackson said revenue could be alternatively raised by asset sales or loans.
“I think the difficulty for residents is the council has been spruiking that the $125 million Bunjil Place will not cost you anything.
“At the same time, it says it needs to increase rates over the cap to afford to do things.”
Meanwhile, Cr Beardon refuted the claim that dissenting councillors were taking the “easy way out”.
He said it would have been easier to go with the flow and vote with the majority of councillors.
“I think people are already paying enough.
“Until we are seeing a major improvement in what they’re getting (from Casey), I won’t be asking them to pay more.”
The rates cap has lowered from the 2.5 per cent cap in 2016, in which Casey Council made a failed bid for an exemption from the Essential Services Commission.
Local government peak bodies have also been critical of the cap which matches CPI but is lower than the 2.15 per cent cap recommended by the ESC.
Municipal Association of Victoria interim president Coral Ross accused the State Government of “double standards” for raising property taxes by 5.2 per cent and employee expenses by 7.8 per cent.
Local Government Minister Natalie Hutchins said the rate cap had ended a decade average of six per cent rate rises and made things “fairer” for ratepayers.
