Call to re-think blanket rate caps

Brimbank council will send a submission expressing its “general support” for the intention of the state government’s local government draft bill.

The state government began a review of the Local Government Act in 2015 and in September 2017 released a draft bill, which it is now calling for submissions on.

While it supports some changes, Brimbank council will oppose provisions around rate capping.

Provisions in the new act permit the state government to impose rate caps on councils in specified financial years.

However, Cr John Hedditch said such caps would put further strain on the council.

“Council itself is under enormous pressure. We’ve said this a number of times at council meetings that the council budget is limited. Seventy five per cent of the revenue comes from rates and we are rate capped on that total,” Cr Hedditch said.

“We are a community which has an enormous amount of positives, but we have huge gaps in it.

“To address disadvantage we need to put community infrastructure in place to give people alternatives like sport, recreation and arts. We need support to do that.

“We are a community that has a lot of maintenance to do, but we can’t do it with the rate capping as it stands.”

Brimbank council’s submission will propose incorporating a new principle in the act, which would require the minister to consider the consequences of a rate cap on a council’s functional performance before deciding to impose the cap.

It will also ask that the minister consider the differences in expenditure required to be incurred by the council in the performance of its functions and ability to raise revenue.

The draft submission was endorsed at this month’s meeting and will be sent to the state government before the March 16 deadline.