Hobsons Bay council has criticised the state government for moving to cap rate rises, saying the political move is popular with ‘punters’ but largely misunderstood.
The council last week lodged its response to the Essential Services Commission review of the cap, which the government intends to introduce next July.
Mayor Colleen Gates said it was too early to tell where budget cuts would be made as a result of the change.
“Councils do a lot more than just collect the rubbish, and a lot of the vital services we provide go to the vulnerable in our community,” she said.
“The state government wants to cap council rates yet has increased the fire levy by 7.2 per cent. Councils collect the fire levy on behalf of the state government. Councils don’t receive any of this levy; our only additional revenue is from taxes on property.”
Cr Angela Altair told last week’s council meeting a rates cap would further hamstring the independent operation of local councils.
“It’s a popular one, the punters love it, but they need to drill down and see how it will hobble us when we come to do our budgets,” she said.
“We are an independent government; we are the third tier of government. We should be able to maintain our autonomy.”
