Council approves ‘in principle’ 3.5 per cent rate rise, fees and charges hikes
Mornington Peninsula ratepayers will be slugged the highest rates in seven years after a plea to freeze the tax was rejected.
South East
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Mornington Peninsula ratepayers will be slugged an extra 3.5 per cent as the local council hikes rates to a seven year high.
The increase is the maximum amount allowed under the state government’s Fair Go rates cap for 2023/24.
Councillors voted in favour of the ‘in principle’ rise by five votes to four, just hours after the Reserve Bank of Australia increased interest rates for the 10th consecutive time.
The decision followed a failed attempt by the former mayor Anthony Marsh to freeze rates for the next financial year.
Mornington Peninsula Shire chief financial officer Bulent Oz said the increase represented $5.6m in revenue for the council.
He said if the increase was not accepted it would result in a compound loss of $77m over ten years.
Cr Marsh argued that the money would not be “lost” but rather “saved for the community” to help cover rising mortgage repayments, power and grocery bills.
He said the council should be able to find savings without having to cut services.
Cr Marsh shared a message from a Hastings ratepayer that described locals already battling “overwhelming” increases in living expenses.
“If council can do anything human to show empathy and support for families right now, it would be to reconsider their decision to increase their rates,” Karen Williams wrote.
“Because there will be a ripple effect.”
A Leader poll revealed further public support for the proposed freeze with 87 per cent of respondents saying the council could “trim the fat” on spending.
Just five per cent of voters thought a freze would mean a loss in services and a further 8 per cent believed the Fair Go cap did enough to control rates.
However, councillors said the increase was needed to stop the council “falling further behind”.
Cr Simon Brooks said the council was “historically low rating” which put it at a distinct disadvantage when rate capping was introduced.
“As much as I would love to say zero rates increase for this year, it would be financially irresponsible … it would backfire on our ability to provide services and other things for our community,” he said.
Cr Despi O’Connor said the 3.5 per cent rate rise was still lower than inflation, which was currently at 7.4 per cent.
“We’re not asking to match inflation, we’re merely trying to keep up.”
Other councillors pointed out that the shire received “significantly less” in financial assistance grants than other municipalities.
The grants are funded by the federal government and administered by the state government.
In 2022/23 Mornington Peninsula Shire received $6.6m compared to $24.7m allocated to the City of Greater Geelong.
Cr Susan Bissinger said the council should find new ways to generate revenue instead of relying solely on rates and fees and charges.
How they voted on rates increase
For: Cr Simon Brooks, Cr Antonella Celi, Cr David Gill, deputy mayor Debra Mar and Cr Despi O’Connor
Against: Mayor Steve Holland, Cr Anthony Marsh, Cr Susan Bissinger and Cr Lisa Dixon
Absent: Cr Sarah Race
The council has received 2800 submissions from residents about what they want funded in the upcoming budget.
Leader understands the number one request relates to footpaths.
Submissions can be made online until March 15.
The council also voted in favour of a new fees and charges schedule that included increases of up to 260 per cent to retrieve pets from the pound and 300 per cent for footpath trading permits.
No changes were made to any of the 800 plus charges, despite Cr Bissinger asking the council to cap any increases at 7.8 per cent in line with inflation.
Biggest rate hike in seven years planned for peninsula
Fresh rate pain is looming for the Mornington Peninsula.
The local council is expected to tonight consider an in principle rate rise of 3.5 per cent – the maximum allowed under the state government’s Fair Go rates system.
The plan was not included on a publicly available agenda for the meeting.
However, Leader understands it will be introduced as an update during the meeting.
A draft of the proposal seen by Leader states that by adopting the rate cap the council would be “demonstrating its commitment to responsible financial management and transparency”.
“This recommendation is based on careful consideration of the financial implications for our community and aligns with best practice in local government.”
If adopted the rise would be the largest since rate capping was introduced in 2017.
The proposal will be discussed by the council at a public meeting tonight at 6.30pm at 90 Besgrove Street, Rosebud.
The council will also consider its fees and charges schedule for 2023/24.
If the schedule is adopted, dog owners would face one of the biggest prices hikes under a plan to implement a $202 fee to retrieve a dog from the council pound – $146 more than the current charge.
Cat owners would pay $178, up 217 per cent from the existing $56 charge.