A Victorian Council has taken a strong stance to demonstrate the effect of cost shifting on Local Government. This is the process of giving Local Government more services without the funding or asking councils to collect fees.
To highlight the impact of cost shifting, Maroondah City Council in Victoria has raised a separate municipal charge on this year’s rates notice for the Fire Services contribution. This contribution has risen to $693,000 – a 34 per cent increase in two years.
Councillor Peter Gurr said Council wanted to ensure the community were aware of the ongoing cost shifting through increases to Local Government contributions to the Municipal Fire and Emergency Services Board (MFESB).
“Council has chosen to highlight cost shifting to residents to make them aware of the issues and impacts that has long been known to Local Government,” Councillor Gurr said. “The increased cost is considerable and Council is required under legislation to pay the charge.
“With the dramatic increase in costs over the past three years, Council decided it was time to make cost shifting transparent to residents. When households receive their rates notice this year, the charge will be easily identifiable as it will appear as a separate entry, after the general rate.” Each household will pay a flat levy of $16 for the Fire Services contribution.
“There is extreme pressure placed on Councils to provide high quality services and deliver more programs and services with no extra funding or insufficient funds being provided to do so,” he said. “At the end of the day, local government has to bear the burden of cost shifting, imposed by other levels of government and then pass it onto ratepayers.”
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