Bayside City Council slammed over plan to hike rates, ratepayers to fork out nearly $80 extra per year

A Melbourne council has been slammed as “greedy” by a former state MP as it plans to hike up rates while it sits on tens of millions of dollars worth of revenue.

A Melbourne council has been accused of being “greedy” for hiking up rates while it sits on tens of millions of dollars worth of revenue, which would see ratepayers forking out nearly $80 extra per year.

Bayside City Council, which spans beachside suburbs including Brighton, Beaumaris and Hampton, plans to hike up rates by the maximum amount of 3.5 per cent and expects to rake in a surplus of $32.6m next financial year – an increase of $7.1m.

This includes a land contribution worth $7m from the Commonwealth government as part of a developer agreement.

Longtime Bayside resident and former Victorian Liberal MP Geoff Leigh said he was “outraged” by the rate hike and has called on the council to reject it.

“It is definitely greedy and I want to know what the reasoning is for it,” Mr Leigh said.

“The Bayside Council has charged ratepayers to a degree that they’ve made a profit out of us.

“I have to say I am absolutely staggered that there are councillors who have gone along with this … this is an outrage and I think, frankly, they should be collectively ashamed.”

Geoff Leigh in 2002 during his time as a Liberal MP.

In addition to forecast revenue, Bayside is currently sitting on $110m of cash and investments but expects this number to drop by $17.1m at the end of June 2024.

On top of jacking up rates, the council also plans to increase its waste service charges by 2.2 per cent.

The combined hikes would see the average Bayside ratepayer coughing up an extra $77 per year.

Mr Leigh said the rate increase would affect “a lot of people” struggling through Melbourne’s cost of living crisis.

Bayside City Council Mick Cummins said the rate cap was “essential” to continue providing infrastructure and services for the community.

“Council’s cash reserves will be drawn down … over the next four years to support service delivery and the capital program which will deliver significant new assets,” Mr Cummins said.

The state government has enforced a rate cap of 3.5 per cent across Victoria.

The council will consider the rate rise as part of its annual budget at a meeting on Tuesday.