Stonnington Council proposes 3.5 per cent rate rise in 2021-22 draft budget

Having given ratepayers a reprieve due to the pandemic, an inner city council has decided to call in the favour and fill its coffers with your cash.

Stonnington Council is proposing a 3.5 per cent rate rise in its 2021-2022 draft budget. Picture Norm Oorloff

An inner city council wants to hit its ratepayers with a rise and more than double its surplus as it looks to rebound after COVID-19.

Stonnington Council has put its draft budget out for public consultation after it was passed by councillors at its April 19 meeting.

The budget proposes a 3.5 per cent rate rise, equivalent to an average of $51.66 per person or roughly $1 per week.

The increase consists of the council clawing back the 2 per cent rise it waived after outcry from residents and traders last year, and another 1.5 per cent in line with this year’s State Government rate cap.

Councillors Marcia Griffin and Alex Lew voted against approving the draft budget, with the rate rise a key sore point.

Cr Griffin urged council officers to think differently and look for other ways to maintain council services without passing on extra costs to ratepayers.

“I have been through this budget line by line and can see efficiencies and cost savings everywhere, without impacting on our essential services,” she said.

“The budget is a total reflection of our ability to innovate and think, and we cannot expect our community to have confidence in us if all we do each year, year after year, is demand higher rates.”

Chief executive Jacqui Weatherill said a rate rise was unavoidable if the council wanted to maintain its healthy surplus and fund its capital works program.

In February, the council was forecasting a $14.7 million surplus at the end of this financial year — $5.2 million less than initially expected.

If approved, the budget is tipped to give the council a $31.08 million surplus by July 2022.

It contains $82 million for projects including the revitalisation of Prahran Town Hall, works at Harold Holt Swimming Centre, and streetscape upgrades to the Chapel Street precinct and Toorak Village.

The council has also set aside $10.3 million for a “customer service improvements and digitisation program” and $17.5 million to improve its parks and open spaces.

Members of the Residents living in the electorate of Higgins Facebook page had mixed thoughts on the proposed rates hike.

Jack Dariol wrote: “Should be zero”, Sean Weatherly wrote: “It’s certainly less than private insurance premium rises”, while Brendan Corr said “Those that will cop the biggest part of this increase can afford it.”

But Stonnington Ratepayers president Dean Hurlston said the council was “tone deaf” to increase rates while businesses and households were still recovering from COVID-19.

“Council still refuses to accept its responsibility to drive efficiency out of its existing budget,” Mr Hurlston said.

“This is not the time to hold onto big surpluses for shiny optional projects that can be delayed.”

Ratepayers can have their say on the budget by making a submission online or writing to the council by May 20.