Hobsons Bay council has released its draft 2017-18 budget which shows rates and waste charges each increasing by two per cent, with the council saying it will become harder to balance community needs as the state government’s rate cap starts to bite.
The council has an operational surplus of $14.5million and plans to spend $35.1 million on capital works. It has $14.2million in existing borrowings and proposes no new loans.
Capital works include $7.25million on roads, $4.1million on footpaths and shared trails, $7.9million on open space and $11.3million for buildings including $4.5million for the new Altona Early Years Centre.
Mayor Sandra Wilson said the surplus was expected to decline in the future because of rate capping and factors such as the drying up of external grants.
“As well as the capital works program, council will continue to fund more than 100 valued services to our community, including libraries, meals on wheels, aged care services, disability services, children and youth services, immunisation sessions, cultural events and local business development, not to mention waste collections,” she said.
Councillor Angela Altair told last week’s council meeting the rate cap made it “devilishly hard” to balance community needs.
“We’ve had to put together a very good budget within some extraordinary constraints, not least of course the rate capping, while … at the same time Treasury itself admits that the forecast for the Victorian wage price index is going to be 2.5 per cent,” she said.
“So, Treasury has determined that we can only increase rates by a flat two per cent while at the same time acknowledging that wages alone will go up by a minimum of 2.5 per cent.”
Cr Altair noted that the tipping levy which the council had to contribute to the state government had gone up 600 per cent over 10 years.
The waste tipping fee includes the landfill levy all councils pay to the government.
It has increased from $9 per tonne in 2008-09 to a forecast $63 per tonne in 2017-18.
The budget is out for feedback until 5pm on May 24.
This 600 per cent increase has added $8.2 million to the council’s costs over 10 years.
