BRIMBANK council’s bottom line will be hit hard by a $16 million superannuation payout, the second-largest in the state.
Budget documents reveal council’s obligation to the defined benefits superannuation scheme — spread over 2012-13 and 2013-14 — is second only to Geelong council, which is believed to be forking out about $20 million.
“It’s a very significant impost on the finances of this city,” Brimbank chairman John Watson said.
Residents will be hit with an average 6.8 per cent rate rise after council released its draft budget for 2013-14 last Tuesday night.
This equates to $1246.93 for the average residential property value of $340,000.
The municipal charge has also increased from $57.74 to $61.67.
The average rates bill increased 6.65 per cent last year.
Chief executive Bill Jaboor said residents could expect more predictability with future rate rises, with projections of 6.8, 6 and 6 per cent in the next three financial years.
“It provides a framework for the future,” administrator Jane Nathan said.
Council will borrow $30 million to fund almost $45 million of capital works, which is twice the amount it borrowed in 2012-13.
A council report said borrowings were important to maintain the program, which includes $17.75 million for roadworks; $5.2 million for sports facilities; $3.05 million for playgrounds, parks and gardens; and $2.5 million for community facilities.
Submissions to the budget close on June 25.
