Moorabool Shire asks ratepayers to have their say on rate capping

The issue will go before a special council meeting on March 23, where councillors will vote on whether to accept the 2.5 per cent rate cap, adopt a 4.15 per cent increase or a 3.5 per cent rate increase.

The notice from the shire issued to ratepayers on February 23 said imposing the rate cap would create a budget deficit of $900,000 across the 2016/17 financial year, as opposed to a deficit of either $473,000 or $134,000 should one of the remaining two options be accepted.

Moorabool Shire deputy mayor Paul Tatchell said he thought it was unlikely ratepayers would elect to encourage council to seek an exemption.  “It’s a tough sell, especially when they’ve been beaten up already by lack of investment in the region,” Cr Tatchell said.  “You’ve gotta get community support and our community is already doing it tough.”

The vote comes after the Hepburn Shire reluctantly agreed on Tuesday night to accept the state-imposed rate cap, which is tied in line with the Consumer Price Index (CPI).  

The council meeting agenda said the council would not have the necessary time or resources needed to mount a case to seek exemption from the rate cap.

The City of Ballarat have continued to pursue an exemption to the rate cap, with mayor Des Hudson saying council would experience a budget shortfall of $225 million over 10 years if the rate cap was upheld.

The Pyrenees Shire have also continued to pursue an exemption.  Mayor Michael O’Connor said while council had spent over $10,000 putting together an application, they risked facing a budget shortfall of $193,000 in the next financial year if they are forced to comply to the rate cap.

Councils wishing to be granted an exemption will need to submit their case to the Essential Services Committee by the end of March, with a decision to be handed down by July 1.