Financial constraints are limiting Macedon Ranges Shire Council’s ability to deliver new infrastructure and basic maintenance to community expectation.
Last week, Cr Geoff Neil raised alarm over the accumulative effect of the state government’s rate cap but passionate debate almost saw him expelled from the meeting.
“The gap between cap and CPI when set in 2015 was modest and coverable. Unfortunately, this gap has grown exponentially, due to the minister, year after year, setting a rate cap below CPI,” he said.
“Nine years later and the impact on this shire in dollar terms equates to around $6.3 million in missed revenue.
“Our expenses are getting higher and our revenue is not keeping pace.”
Cr Neil tried to rally support for council to write to the Local Government Minister “expressing profound disappointment and concern” over the rate cap set for the 2024-25 financial year “being less than CPI”.
“It doesn’t recognise the increased costs we face of maintaining the status quo, let alone delivering new services to meet our community expectations,” he said.
“I am not seeking a massive rate rise here. The differential between rate rise and CPI is little but spread over the municipality will be a small impost on ratepayers.
“I am asking the minister to reconsider her position: set the rate cap in line with CPI so that we are all on the same playing field.”
While councillors understood the sentiment behind Cr Neil’s motion, some opposed its emotive wording and the majority felt a different approach was needed.
Cr Jennifer Anderson said there were many factors to consider under the umbrella of sustainability of local government.
“I don’t think linking rate cap to CPI is necessarily the answer and we need to look at a more holistic picture of the financial sustainability of council,” she said.
“We have significant weather events and natural disasters, increasing employment costs, some cost shifting from state government and also increased impost from state government of roles that the council needs to play.”
Highlighted during debate was the work of peak industry bodies including the Municipal Association of Victoria and Rural Councils Victoria, well as the state government’s own investigation into the financial sustainability of local councils.
Cr Neil was critical of council debate.
“While I sat and listened to those not too enamoured with the motion, I’ve really never heard so much obfuscation in my life. Talk about dance around an issue. It’s been amazing to listen to,” he said.
In his passionate debate Cr Neil was called out for use of poor language (“damn”) and discourteous/insulting remarks referring to fellow councillors.
Cr Neil refused to withdraw his comments at Cr Anderson’s request. Mayor Annette Death warned Cr Neil he may be asked to leave the chamber if he continued to make such comments.
The matter disrupted debate for several minutes.
The motion was lost. A division recorded those in favour were Crs Neil, Bonanno and West. Those against were Crs Anderson, Death, Pearce, Ridgeway, Guthrie and Walker.
