Victorian councils have kept the average rate increase to a 10-year low of 3.8 percent, or $67, The Municipal Association of Victoria (MAV) has announced.
Municipal Association of Victoria (MAV) President, Councillor Bill McArthur said councils were once again having tough conversations in order to tighten their budgets, and the annual MAV rates data demonstrated this achievement.
“Councils across the state have faced external funding challenges including the $139 million freeze on indexation to the Federal Financial Assistance Grants, the scrapped $160 million State Government Country Roads and Bridges program, and ongoing financial pressures from other levels of government.
“Despite these hardships, councils have been able to keep the average rate increase low, while still delivering services including kindergartens, public libraries, maternal and child health, home and community care, street lighting, waste services, and maintaining 85 percent of the state’s road network.”
Cr McArthur also said that comparisons to the Consumer Price Index (CPI) are unfair.
“While CPI measures the cost of common household goods including bread, milk, and electricity, a council’s basket of goods includes more expensive items like construction, material and wage costs.
“Our survey shows that the average increase of 3.8 percent is in line with the Local Government Cost Index of around three-four percent, which tracks councils’ cost movements, but does not include extra funding needed to maintain ageing assets.”
Cr McArthur said that cuts to funding like the freeze on the Financial Assistance Grants have put councils between a rock and a hard place.
“Rate rises cause community anxiety but service cuts cause community outrage.
“Councils have worked tirelessly this year to better understand what the community wants by holding public meetings, listening posts, participatory budgeting, and surveying residents.
“The MAV is aware that in the current economic climate, many homeowners face financial challenges, and we would urge residents under genuine financial stress to speak with their council to find a way forward.”
