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Mildura Weekly : Friday March 6 2015 Vol 9 No 17
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NEWS 03 FRIDAY, MARCH 6, 2015 MILDURAWEEKLY.COM.AU By BEN PISCIONERI MILDURA Rural City Council chief executive Gerard José says that while Council is still to take a position on the looming in- troduction of rate capping, his personal experience has shown a need for “substantial invest- ment” from State and Federal Governments to avoid cuts to service levels or infrastructure. The Victorian Government has committed to capping coun- cil rate increases at the rate of in- flation from next year. Member for Northern Vic- toria Steve Herbert this week announced that the Essential Services Commission had been appointed to provide advice on the rate capping framework. Mr Herbert said the ESC would consult with councils and Local Government groups in coming months before releasing a draft report on the impacts of rate capping and how it will be implemented. This draft report will be open for comment before a final re- port is submitted to the Victorian Minister for Local Government by October 31 this year. In the meantime, Victorian councils will be in the midst of preparing their budgets for the coming 12 months, knowing there will be a major shake-up in how their revenue is generated in the future. Mr José said yesterday that as a Council it was too early to take a position for or against rate capping. “Council is not for or against the concept at this stage and we’re really only now working through the potential issues, benefits and unforeseen impacts before taking a formal position on rate capping and the possible framework and implementa- tion,” he said. But Mr José did reveal his own experiences and thoughts on the system. “My personal experience with rate capping in New South Wales is that it can have a par- ticularly negative impact on the financial capacity of rural and re- gional councils to be sustainable in the long term,” he said. “With large infrastructure and widespread, small popula- tions compared to city areas, it is almost impossible to maintain service levels and necessary infra- structure under this system with- out substantial investment from State and Federal government.” He added that Mildura had specific challenges compared to the rest of the State. “Mildura Rural City Council comprises about 10 percent of the State on an area basis,” Mr Josésaid. “We have a huge road net- work and many services and fa- cilities are duplicated because of distance between towns. “As Local Government only receives about three percent of public funds and yet is expected to maintain nearly 40 percent of all community infrastructure, it is obvious we don’t receive a fair share of public income from oth- er levels of government.” Elsewhere in the State there have been widespread concerns the introduction of rate capping in 2016 could see councils raise rates this year as well as cut ser- vices and jobs. It’s already been reported that Baw Baw Shire Council re- cently linked job losses to the Victorian Government’s rate cap- ping policy. Despite these concerns and his own experiences, Mr José maintained that Council was still to take a position on the issue and wouldn’t be drawn on how the impending intro- duction of rate capping would impact on Council’s upcoming budget deliberations. “Determining the operation- al plan, budget and subsequent level of services, rates, fees and charges is always full of challeng- es and forthright conversations,” he said. “Council will obviously be considering the development of its operational plan and resourc- ing requirements through the budget process, with the goal of balancing provision of ser- vices and keeping community infrastructure maintained and at manageable levels. “While there is no rate cap- ping limit for 2015/2016, Coun- cil will be aiming to keep its re- sourcing at appropriate levels to support the long term financial plan. “We need to ensure future residents are not left with huge backlogs of deteriorating infra- structure and debt, but also to not overburden our current rate- payers.” However he made a commit- ment to keep any rate increase in the 2015/2016 budget to a mini- mum. “Council has made a con- certed effort over the past three years to reduce the level at which rates are increased every year and has successfully come down from a six percent increase in 2012/2013 to a 4.5 percent in- crease in 2014/2015,” Mr José said. “This effort will continue for next year’s budget and into the future.” Looming rates cap creates uncertainty • IN CHARGE: Mildura Rural City Council chief executive Gerard José. THE Australian Inland Botanic Gardens will celebrate Seniors Week in unique fashion on Thursday, March 19, when it hosts the Young at Heart – Aus- tralia’s Seniors Film Festival. An annual event that is con- sidered the flagship of Seniors Week, the Young at Heart Fes- tival aims to recognise the best Australian short films starring actors aged 55 and over through the ‘It’s Your Call’ Short Film Awards. Young at Heart is the only film festival specifically created for, and in consultation with, the nation’s seniors. The festival will start at 10.30am, with $2 coffee and scones available from 10am to 10.30am. More information is available by contacting Ken Mid- dleton on 0449 677 702. Young at Heart film festival at AIBG Friendly people, comfortable family surroundings where you could stop by and have a chat whilst enjoying a coffee and a meal? 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Friday February 27 2015 Vol 9 No 16
Friday March 13 2015 Vol 9 No 18
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