Hobsons Bay council has acknowledged the new rate cap of 3.5 per cent for the 2023-24 financial year.
Local Government Minister Melissa Horne announced the cap on Thursday, December 29, following independent advice from the Essential Services Commission [ESC] recommending a cap of four per cent in line with the Consumer Price Index.
Ms Horne said the rate cap of 3.5 per cent took higher inflation and the need to protect ratepayers from unlimited rate hikes into account.
“Each council is responsible for setting rates within the rate cap based on the needs of their community,” she said.
“Community members have the chance to engage with their local councils as they make decisions about rate rises through their budget process each year.”
Hobsons Bay mayor Tony Briffa said the council would continue to review the services it provides, as well as operational budgets and capital works delivery to ease the impact of inflation.
“Council acknowledges the increasing cost of living pressures on ratepayers, and likewise we have also faced increased costs for the more than 100 services Council delivers for our community,” she said.
“Council continues to work hard to deliver these services more efficiently and cut costs where possible.”
Cr Briffa said the council will work hard to minimise the impact of rising construction costs.
“The funding for our capital works program is expected to remain consistent with previous financial years, although increased construction costs will mean the value for money we are able to achieve in our capital program is expected to decrease,” she said.
“Council is developing our budget for the 2023-24 financial year and will continue to ensure we comply with the rate cap.”
Councils set rates to fund essential community services and infrastructure such as parks, libraries, roads, waste collection and sporting grounds.
Details: localgovernment.vic.gov.au/council-rates-and-charges
