THE Murrindindi Shire CEO says Council has no alternative but to increase rates to deliver its usual services while responding to bushfire recovery needs.
The draft budget, which proposes a six per cent rates increase, and the Council Plan for the 2009-10 financial year, are currently open for public comment.
Murrindindi Council Acting CEO Rob Croxford said Council had to make difficult decisions to deliver a balanced budget to achieve its long-term financial plan during a period of unprecedented circumstances.
The bushfires have placed an enormous pressure on Council finances, both in the extra costs incurred as a result of the fires and a huge loss in rate income.
Council estimates that rates and charges income will be nearly $1.5 million down on last year.
Council has asked the State Government for assistance in meeting budget shortfalls for the next four financial years.
"With a $1.5 million dollar hole in our budget there is an obvious and significant impact on our bottom line," said Mr Croxford.
"However, Council is expected to demonstrate they are being financially responsible and have suggested a six per cent rise in rates over last year."
He said that the suggested six per cent rise only "goes a small way to meeting the actual cost increases to Council."
"The Enterprise Bargaining Agreement (EBA) with staff and unions and the costs of road construction and heavy plant operation means Council costs are significantly higher than the CPI."
If Council is to continue to deliver its usual services to the whole of the Shire plus respond to bushfire recovery needs, there is no alternative but to increase rates, Mr Croxford said.
"Without this our only option is to engage in a major cost-cutting exercise which would mean a decrease in services. Council does not think this is an acceptable option.
"However, we are open to suggestions from those who believe any of our services are unnecessary and should be discontinued."
Mr Croxford said that Murrindindi Council "does not think decreasing services is an acceptable option especially when we are doing everything we can to encourage people to return to the Shire after the fires."
As the budget planning was delayed, a revised instalment payment schedule has been developed.
The first instalment will now be payable by November 30, 2009, the second on January 29, the third on March 31 and the fourth by May 31, 2010.
For those who choose to pay in one lump sum, the date is unchanged and must be paid by February 15, 2010 to avoid interest fees.
Mr Croxford said that Council would also approach the government for a Rates Assistance Package, along the lines of the Drought Assistance Programs for people in the community who may have difficulty with rate payments.
"Further, alternative payment instalment plans can be arranged once the rate notices have been prepared and sent out," he added.
Full details on Council’s Budget and rates for 2009/2010 are available on the Council website, www.murrindindi.vic.gov.au, and a fact sheet will be sent out with the rate notices.
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"No alternative" to rates hikes
