Zero rate rise or lose projects
Mayor Danny Goss has urged community members to have their say now if they want a zero rate rise.
But, councillors also warned short term rate relief this year would have a significant impact on infrastructure.
The average two per cent increase for residential ratepayers will equate to about $39 more on this year’s rates.
Cr Goss said council was open to community opinion about a zero rate rise but community members had to seriously weigh up the loss of infrastructure projects.
“If we go to a zero rate rise, we have to look at what we lose,” he said.
Community assets director Cohen Van der Velde explained a zero rate rise would equate to the loss of $1 million revenue in the budget.
He said the cumulative impact of that over the next 10 years, which is the lifespan of council’s Long Term Infrastructure Plan, was $11.4 million.
Some of the projects that may not be delivered if rates were frozen include:
- Gravel roads sealing program - $550,000 - Queen St, Warragul streetscape project $497,000
- Warragul
- Public art program - $95,000 - Environmental Sustainability Strategy initiatives - $81,000
- Recreation facilities (coaches box replacements) at Western Park, Buln Buln and Darnum - $75,000
- Road safety improvements in Darnum,
Parking Study findings $100,000
Nayook and Seaview - $60,000
- Place Making Program, three towns instead of four - $50,000
- Neerim South Oval sprigging of summer grass - $35,000
- Street tree planting program will be reduced by half, from 600 to 300 new trees $28,000.
Cr Goss said councillors regarded the LTIP as a blueprint and they did not want to push back projects listed in the plan.
“If the community say ditch the projects then we will listen but we have to make a choice.
“We don’t want to decimate the LTIP and then make it up in the years ahead.
“Something has to give…we can’t stop the renewal, we can’t stop fixing things so it comes down to capital projects.
“The projects will have to be done at some stage and then they will get pushed back.
“For a growing shire we already have a lot of catching up to do. We’ve caught up a lot in four years and we don’t want to let that stop,” he said.
Councillors last week approved in principle the $98.3 million budget, that will see more than $62.6 million raised from rates and charges and deliver a $30.7 million in new capital works for th2020-21.
Council expenses will total $85.6 million, resulting in a surplus of $12.7 million.
Officers said the surplus was then converted into an adjusted underlying result that better reflects council’s level of financial sustainability.
The underlying result is based on the surplus, excluding non-recurrent infrastructure grants and capital contributions from other sources, to arrive at the adjusted surplus of $400,000.
Cr Peter Kostos said the draft LTIP endorsed by council as part of the budget process, outlined $260 million worth of projects over 10 years.
“If we fail to have a two per cent increase this year, a lot of those figures will change in that 10 years.
“It is very, very important that we are diligent this year,” he said.
Cr Michael Leaney encouraged people to look at the budget and look well into the future.
“I don’t want to see the shire crippled into the future. A lot of people complain about rates but compared to other shires we are the lowest…our rate in the dollar has dropped because the pool has got bigger,” he said.
Cr Joe Gauci said preparation of this budget had been weighing on councillors’ minds since the start of COVID-19.
“At first we aid yes to having a zero rate rise but we aren’t doing any favours to our community by taking a short term relief approach.
“I really want to hear from people…if you don’t want to pay the extra rates, let us know what services you don’t want,” he said.
Cr Keith Cook said many people often comment to him about achieving savings through cutting staff.
He said during his four years on council, he believed staff operated at a “lean” level.
Budget in detail - pages 20-21