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East Gippsland Shire Council disappointed by 2.75% rate cap for 2024/25 and will be challenged to upkeep services due to increased charges

East Gippsland Shire Council expresses disappointment at the 2.75% rate increase cap for 2024-25, citing challenges in maintaining services efficiently amid higher government charges, seeking public input for the upcoming budget.

By news@gippsland - 10th January 2024 - Back to News

East Gippsland Shire Council has expressed its disappointment to the State Government following the recent announcement of a cap on rate increases of just 2.75% in the 2024-25 year. This comes at the same time as the State Government increased its own charges substantially more, such as public transport fees by an average of 5%, Ports Victoria fees and charges by 10%, admission prices to zoos for schools by almost 10% and electrical safety certificates by up to 11%.

State funding for council services lacks inflation adjustments. Rate cap decrease to 2.75% contrasts with economic forecasts

Budgetary challenges ahead

Deputy Mayor Cr Jane Greacen OAM said the rate cap is a vital component to developing the 2024-25 annual Budget which will be released for public comment in April. "Our key focus is always to deliver high quality services to our community efficiently and sustainably and we will of course cut our cloth to size, however a rate cap of 2.75% for 2024-25 is disappointing and doesn't even recognise the increased cost of maintaining the status quo, let alone delivering new services to meet community expectations."

"We understand rate increases are never popular. Our rates and charges revenue made up less than half (42%) of council's operating revenue in 2022-23 so, and like all councils, we are reliant on grants to maintain and improve our services and assets. We are responsible for assets worth $1.2 billion," Cr Greacen said.

Funding pressures persist

The State Government provides recurrent funding that contributes to specific council services such as libraries, emergency management and school crossing supervisors. Many of these funding allocations have not seen inflation increases in 2023-24, or very limited increases.

The rate cap of 2.75% in 2024-25 is a sharp decrease from the 2023-24 of 3.5% and also lower than the Reserve Bank of Australia's CPI forecast for 2024-25 of 3.4%. "We have already implemented numerous business efficiencies, such as internal restructures, adopting a shared services model of employment with Wellington Shire Council and undertaken collaborative purchasing projects such as our bulk electricity contract.

Community-driven budget

Cr Greacen added, "We will continue to prioritise what the community wants through our public consultation on the annual budget. Combining the community aspirations while also delivering on our legislative requirements is a difficult balancing act each budget year.

"It is disappointing to see while we are asked to work within a 2.75% rate increase, the State Government has this month increased a number of its own charges well above 5%," Cr Greacen said. Residents and ratepayers who would like to give feedback on council's draft 2024-25 Budget are asked to check council's website, social media and local newspapers in April for details.

Pictures from East Gippy TV YouTube channel.

Source: http://gippsland.com/

Published by: news@gippsland.com