MARIBYRNONG City Council adopted its 2006/07 budget last week during a fiery public meeting.
Councillors broke into heated debate over what some said was a broken election promise to keep rate increases at a reasonable level.
The marathon meeting continued for almost five hours, and ended with councillors agreeing to comply with a new code of conduct that would block similar outbursts.
The $71,586,000 budget attracted two submissions while it was on public exhibition from 17 May to 7 June.
But the rate increase was the real issue.
Almost $45 million of the budget was funded by the contentious 5 per cent rate rise, up significantly from the last year’s 2.9 per cent.
Councillor Michael Clarke defended the rise and said 3.2 per cent of the increase covered the Consumer Price Index (CPI), while the additional 1.8 per cent rise would be used to upgrade the municipality’s aging assets including roads, footpaths and drains.
“This budget has been severely impacted upon by the cost shifting from state and federal governments,” Cr Clarke said.
“Increased costs for maternal and child health services, reduced allocations from the Victorian Grants commission, and removal of the competitions policy funding are just some of the items which have contributed to just under $1.4 million dollars that we have had to find from internal efficiencies.”
But, Councillor Janis Rossiter said she could not support the 5 per cent rate increase – in keeping with her election promise.
She said the council was still in debt, despite “the sacrifice” of the Footscray swimming pool.
“Council is spending about $1.5 million where it shouldn’t be,” she said, referring to the impact of government funding shifts.
Councillor Michelle MacDonald fired back and said a lesser rate rise was not sustainable. “Anything less than 5 per cent is not equitable,” she said.
“It’s about being sustainable. Anything less is taking from places we don’t want to go. We’re already saving $1 million a year on the Footscray pool.”
Cr Rice said one reason for raising the rates lay in cost increases in things like petrol and higher wages.
However, she said there was a silver lining to the budget in the increased property values.
Commercial properties are up 23 per cent, and residential properties are up 6.3 per cent.
“This means 37 per cent of properties will receive a decrease in rates,” she said.
Council admitted that 63 per cent of residential property owners will receive an increase when the rates notices are sent out in August.
