Moorabool Shire ratepayers will be spared from further rate rises above the state average after council agreed not to apply for an exemption to the state government-imposed rate cap beyond the 2016/17 financial year.
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Moorabool was one of six shires across the state to be granted an exemption to the ‘Fair Go Rates’ legislation, which capped rate increases over 2016/17 at 2.5 per cent. Of the six, Moorabool was one of only two councils to receive unqualified support, allowing it to completely set its own rates for the financial year.
At the meeting last Wednesday council was asked to commit to making an application to the Essential Services Committee of a 3.5 per cent rate increase for 2017/18, however a resolution to not seek a variation was passed.
Councillor Paul Tatchell moved the resolution and said while the shire did require more funding to maintain critical infrastructure, it should not fall on ratepayers to make up the shortfall.
“All we’re doing by applying for extra (rate variation) is covering up the government’s lack of funding in the region,” Cr Tatchell said.
West Moorabool councillor Tom Sullivan moved the motion in support of the rate rise application, which was not seconded The resolution moved by Cr Tatchell and was carried 5-2, with Cr Sullivan and mayor David Edwards voting against.
Documents provided at the general meeting in Ballan said without a rate rise of 3.5 per cent in 2017/18 and beyond, the council would be running an underlying deficit by 2021/22.
Should the rate rise application have been successful, the council would have earned almost $15 million in extra revenue across the next 10 years according to the council’s Strategic Financial Plan.
Cr Tatchell said while Moorabool would have had a strong case for applying for a further rate rise, the cost of the application could have been as much as $70,000.
The Courier was unable to contact Cr Sullivan or Cr Edwards.