Brimbank council will not apply for a variation on the rates rise cap set by the state government, forcing it to find savings of $700,000 in next year’s budget.
The state government set the rates rise cap at two per cent for the 2017-18 year, down from 2.5 per cent in the 2016-17 year.
Six councils have applied for variations to the rates rise cap, but Brimbank council will find savings elsewhere in the budget rather than apply for an additional rates increase.
Brimbank mayor John Hedditch said that while the council had decided not to apply for a variation on the rates rise cap, it was concerned about constraints on services.
“As a new council, we were keen to make sure that the operations of the council are as efficient as possible,” Cr Hedditch said. “We also understand and very much support that there needs to be significant community engagement before applying for a rate cap [variation].
“That said, we are very concerned about the long-term effects of rate-capping, particularly on our ability to make investments we need.”
Council corporate and community relations director Helen Morrissey said finding further savings would be difficult as council had an ongoing program of implementing operational savings.
“In 2016-2017, council implemented savings of $6.5 million in order to meet the government’s legislated 2.5 per cent cap for that year,” she said.
“Nonetheless, council will continue to seek further efficiencies with the aim of minimising impact to services as much as possible.”
“Council’s long-term financial plan 2016-2026 was developed with a projected increase of 2.5 per cent for the 2017-2018 financial year and future years.
“The government’s two per cent rate cap for 2017-2018 will require council to find additional savings of $700,000 next financial year.”
The Brimbank Animal Expo, Be a Brimbank Gem program and funding for the Whitten Youth Leadership project were some of the expenses council cut last year to meet budget constraints generated by the rates rise cap.
