Brimbank council will slash an extra $2.2million from its next budget after it chose not to seek a rate rise beyond the state government-imposed cap.
Star Weekly revealed last week the council did not apply for a higher cap from the Essential Service Commission after the government announced on December 31 that all future rate rises must be in line with the consumer price index.
The council did not apply for a higher cap because of “short timeframes and the required consultative processes”.
The council will now need to find $6.2million in savings in its next budget.
Corporate and community relations director Helen Morrissey said the council was yet to identify where savings would be found.
“During the 2015-16 budget preparations, council identified $1.9million in savings, with a further four-million identified in the 2016-17 budget,” she said.
“Council will now need to find an additional $2.2million, on top of the $4million already projected in the long-term financial plan. We are currently working through a process for identifying these savings.”
Star Weekly reported last September that the council believed the introduction of rate capping would cost it almost $30 million over the next five years.
The council cut funding for community events and tree planting in its 2015-16 budget to make up $1.9million in savings.
Sunshine Residents and Ratepayers Association spokeswoman Catherine McDonald said administrators should explain to residents why a rate increase, capped or not, should lead to cuts in services.
“A capped rate increase is still an increase, and there is no reason why a rate increase should lead to a cut in services,” she said.
“The council’s financial problems arise from its $54million community and civic centre, which is supposed to improve its administrative performance.
“Ratepayers often continue to get poor value for money from council, and the failure to maintain and invest in community infrastructure is a false economy that leads only to future problems.”
