By Michael Newhouse
A PROPOSAL to hit Brimbank ratepayers with an 8 per cent rate rise this coming financial year has caused councillors and residents to question the council’s financial management skills, after its draft budget was unveiled last week.
An 8 per cent rise represents an increase charge to ratepayers of about $75 a year, or $1.45 a week, on average, according to Brimbank City Council.
It would see the council take in an estimated $78 million in rates revenue, an increase of $6.7 million from the 2006-2007 financial year.
The proposed rate rise comes after the council decided to hold off raising rates in last year’s budget – a move that at least one councillor admitted at last Tuesday’s budget meeting was a mistake.
Councillor Costas Socratous described the decision to hold rates last year as “financially bad” when discussing the proposed 8 per cent hike in the 2007-2008 budget last week.
Councillors unanimously approved the decision to keep rates on hold last year.
“It was a rational decision, but I hope to learn from our mistakes,” Cr Socratous said to applause from the public gallery.
His comments drew a fiery response from last year’s mayor, Cr Natalie Suleyman.
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Cr Suleyman defended the decision to keep rates unchanged.
Asked late last week about the exchange, she said Cr Socratous’ attack on the previous budget and leadership was “uncalled for” and “grandstanding”.
“I stand by that decision (to leave rates on hold last year) and I think the fruits of that decision are now being delivered,” Cr Suleyman said.
“Cr Socratous … can only think about hindsight rather than have an actual vision for the future,” she said.
Delahey Action Group secretary David Anderson said two smaller rises, instead of one big one, would have been easier for ratepayers to handle, but said an 8 per cent rise was not exorbitant.
“I think if you look at it on the basis of it being an increase over two years… it is as reasonable as one can expect, given the demands on the council for extra services and extra capital works,” he said last week.
Residents and the council needed to show restraint when demanding and considering capital works projects, he said.
But the president of the Sunshine Residents and Ratepayers Association, Darlene Reilly, said the percentage of financing directed at community projects needed to increase, while council needed to cut staffing costs.
Staffing costs are expected to soar by almost $4 million during the coming financial year.
Ms Reilly also agreed that the rise should have come in increments.
“It’s a fair slog considering that I don’t think the rate rise would have been as high if they’d had a smaller rate rise last year,” she said. “It’s making up ground.
“The community had to do without all last year … and now we’re paying the price,” Ms Reilly said, suggesting a 4 per cent rise last year and a 4 percent rise this year would have been far better for the community.
