Pyrenees Shire Council to decide if urgent meeting with minister needed for financial sustainability

To kick off the 2023 council meetings, Pyrenees Shire councillors will discuss whether or not to apply for a higher rate cap to help fill the gap between income and rising inflation.

The council officers outline in the agenda a number of issues facing the council's financial sustainability.

The 2023/24 rate cap has been set to 3.5 per cent by the Essential Services Commission, the highest cap since the Fair Go Rates system was introduced in 2015.

READ MORE: Rate cap prompts discussion about Ballarat Council services

Despite this, council officers said it will still "limit council capacity to increase revenues" and council will need to rely on grants to achieve targets.

Over the last two years, tender prices presented to council have increased by 30 per cent.

The report also outlines worries the council will not be able to afford "real wages growth" as workers start negotiations for a new enterprise agreement this year.

All of this considered, council officers were not confident the community view would support a higher cap because of the impact of increased inflation.

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For this reason the recommendation before council is to not seek a higher cap.

It is highlighted that the engagement strategy for the upcoming budgets would include "a frank community conversation around long-term financial sustainability and potential service impacts".

Councillors are also recommended to see an "urgent meeting" with the relevant ministers to highlight the "significant sustainability challenges" currently facing the council.

The meeting will be held on Tuesday night.

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