Maroondah Council calls for Federal funding help, facing $9.6m loss by June 2022

An outer east Melbourne council is facing a loss of almost $10m by the end of the financial year, with one councillor fearing a rate hike could hit residents.

Maroondah Council’s finances have been hit hard by the impact of the Covid-19 pandemic. Picture: Kiel Egging.

A veteran councillor in Melbourne’s outer east fears his council might have to consider a rates hike as it continues to lose millions of dollars because of Covid.

But Maroondah Council has assured ratepayers it won’t go beyond the State Government’s 1.75 per cent cap, despite losing about $30m in income since the pandemic began.

The council discussed its mid-year financial report at its meeting on Monday night, which showed a $3.7m loss from July to December 2021.

It is on track to post a $9.6m deficit by the end of June and has done a mid-year budget review, which is set to be presented next month.

The council will also put forward a motion for the Australian Local Government Association’s conference in June, calling for more federal funding support for councils nationwide following the “catastrophic” impact of Covid-19.

Cr Tony Dib said he felt campaigning had to start sooner rather than later, as the conference would take place after the Federal Election, tipped for May.

“The federal government need to be called and asked to throw money at us just like they did with businesses and individuals,” Cr Dib told Leader.

Maroondah councillor and four-time mayor Tony Dib is worried about the council’s ongoing losses due to Covid-19. Picture: Ellen Smith

“If Covid takes us another 12 months in, we’ll definitely have to borrow money or do something, because there is no money growing on the tree.”

Cr Dib said the only way for the council to improve its position without extra financial support would be to apply for an exemption to increase rates, or cut staff wages or services.

“If rates can’t go up to all, and because services have been shut for the last two years, where else do you get the money from?” Cr Dib said.

“Either you cut services or increase rates, because rates is the only income we have.”

Despite the projected heavy loss for this financial year, the council stated it still had “ongoing” savings in the bank but “only to the level required to meet existing or future commitments”, equating to about $17m.

Mayor Mike Symon said the council was “still in the black” and had no plans to increase rates for the 2022-23 financial year.

“The council has always worked within the State Government declared rate cap and is not

seeking to raise rates beyond next year’s rate cap,” he said.

Meanwhile, 10 candidates are running for a spot on council in the Wonga Ward by-election, which will be conducted by postal vote next month.

They include Linda Hancock, wife of deputy mayor Rob Steane, and Labor-aligned former teacher Donna Mackinnon, who unsuccessfully ran for the position in 2020.

The by-election is being held after ex-councillor Nora Lamont resigned in December to concentrate on health issues.

Residents living in Wonga Ward, which covers parts of Ringwood and Ringwood North, will receive their ballot packs in the mail this week.

They will have until 6pm on March 11 to return them, with the winner set to be declared on March 22.