The Euroa Gazette 110123

Page 1

Incorporating the Nagambie Times and Violet Town Sentinel

AVENEL - EUROA - LONGWOOD - NAGAMBIE - STRATHBOGIE - VIOLET TOWN Wednesday, January 11, 2023

Phone: (03) 5795 3041

$1.50 (inc.GST)

www.euroagazette.com.au

New rate cap for Vic councils Councils able to raise rate revenue to 3.5 %

By GUS RIDDER

CLEANING UP NAGAMBIE: Teams in Nagambie have been working hard to repair flood impacted areas of the town, including the Nagambie Holiday Park which was heavily affected. ■ See story page 14

THE Strathbogie Shire Council will have the ability to raise its rate revenue by up to 3.5 per cent for the 2023/24 financial year after a new rate cap was announced last week. Minister for Local Government Melissa Horne announced the 3.5 per cent cap for all Victorian councils as part of the Andrews Labor Government’s Fair Go Rates system. The Fair Go Rates system was introduced in 2016 as an attempt to ease cost of living pressures on Victorians and encourage sound financial management by local governments. “The rate cap for the next financial year takes into account higher inflation and the need to protect Victorians from uncontrolled rate hikes, while ensuring councils can continue to deliver vital community services,” Minister Horne said. “Each council is responsible for setting rates within the rate cap based on the needs of their community.” Councils set rates for their residents and use the revenue to fund essential community services and infrastructure like local parks, libraries, community centres, roads, kindergartens, waste collection and sports grounds. Within this framework, rates are set individually by councils for their municipalities every year through their budget process and require consultation with their communities on decisions relat-

ing to budgets, rates and other charges. Strathbogie Shire Council Mayor Laura Binks acknowledged the scope of the rate increase and discussed how council would operate within the new cap. “Council has consistently set rates within the cap since the Fair Go Rates program was introduced,” Cr Binks said. “Council is currently in the process of preparing the 2023/24 Draft Budget where the overall rate increase will be determined. “This will then form the basis of an extensive community engagement opportunity for our community to provide their feedback. “Strathbogie Shire has successfully managed its budget under the rate cap for several years despite pressures from inflation, labour shortages and spiralling materials costs. “Despite the challenge of the rate cap being below the rate of inflation, we have delivered improved services and invested in new facilities including business support, maternal and child health, community development, our swimming pools, new footpaths, streetscape upgrades and so much more. “We have also successfully obtained grants to complete some wonderful projects for our community.” While not outlining how the rate increase would impact the costs faced by local ratepayers, Mayor Binks recognised that regional councils like Strathbogie Shire are in dire need of increased funding.

“We are acutely aware of the significant impact ongoing wet weather and flooding has had on our road network,” Cr Binks said. “Across our shire we have 2210km of roads - 1465km unsealed and 748km sealed. “On top of this there are 521 bridges and culverts to maintain. “Maintenance of this extensive road network is a significant ask, even when conditions are good. “With about 7500 ratepayers our ability to generate enough revenue to cover the actual costs to construct, maintain and upgrade roads and other assets is impossible without assistance from state and federal governments. “We are a small rural shire and an asset-heavy level of government. “We manage our road maintenance responsibility prudently, considering the combined impacts of climatic conditions, rate capping and reduced government grants. “However, the continued lack of State and Federal government investment in roads, maintenance, and infrastructure renewal, will have longterm impacts on the quality and safety of local roads across Strathbogie Shire.” The decision on the rate cap for the next financial year was guided by independent advice from the Essential Services Commission (ESC) recommending a cap of four per cent - in line with the Consumer Price Index, but the government set the rate cap 0.5 per cent below this figure.

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John Stringer 0418 575 156 e: john.stringer@nh.com.au

View by appointment Nutrienharcourts.com.au

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