By Jed Lanyon
Yarra Ranges Council formally endorsed its budget and 10 year capital expenditure program at the 29 June council meeting.
The meeting saw councillors debate the 1.5 per cent rate increase, which had been a contentious issue amongst councillors and residents.
Mayor Fiona McAllister said that while the budget was heavily geared towards recovery from Covid, she admitted it would now become one of recovery from the devastation of last month’s storm.
“The four million that we had set aside for Covid recovery, suddenly seems insubstantial and the many millions, if not tens of millions that will be needed to fund a storm recovery, has become very front of mind,” she said.
The Mayor admitted that this may cause the budget tocome under review in the near future.
“We may need to review our budget in the next three to six months time as the truth of the impact of what has happened to all of us is revealed.
“Of course we see the challenges that we will face with recovery from storms and supporting the community that is still reeling from covid and is now absolutely reeling in terms of recovery from the storms. Times are hard for many within our community, so it isn’t easy that we lean in with a very small rate increase of 1.5 per cent. But we do it knowing that we will support our community
Councillor Cathrine Burnett-Wake pushed to see an amendment that would see no rate increase, that would equate to a reduction of $1.9 million in general rates revenue.
Ms Burnett-Wake argued the impacts of lockdown and the impact of the storms, where her Streeton Ward was worst impacted, as reasons why a rate rise should be on hold.
“I want to very importantly address the confusing messaging around this rise. Although this year’s budget has a 1.5 per cent increase, in practice there will also be an additional 2 per cent added from a carry over from last year,” she said.
“If this budget goes through as is, already struggling residents will suffer a real terms 3.5 per cent rate rise. There is nothing we can do to prevent the increase rolled in from last year. That is a consequence of decisions made by the council of last year. I was not a councillor at that time, I did not vote for it and regretfully I cannot take action against it.
“Yes, there are some people who can absorb a rate increase. However, there are many who cannot. The draft budget introduction set out that the rise would equate to an average of $43 for the year.
“That amount is misleadingly calculated on the 1.5 per cent. It does not include the buried per cent. And let’s not forget that the calculation of our rates is tied into the value of our properties as per the Valuer General. On average, across the whole municipality the rateable value increase is 3.99 per cent.
“Streeton Ward, my ward, sees the largest increase at an average of 6.56 per cent – some suburbs in Streeton are even higher, Sassafras tops out with a 11.45 per cent value increase. The reality is that the increase far exceeds the touted $43. The bottom-line real cash outlay will be, on average, more. A hypothetical average Sassafras resident might see a raise of $430. Ten times the meaningless $43 figure being used to argue against concerns about increases. For some it will be less, but for others it will be far more.”
Cr Burnett-Wake argued that recovery costs associated to the storms should not be seen as an excuse to increase rates as state and federal government disaster and relief funding should shoulder the damages as opposed to victims and local government.
Councillor Tim Heenan shared the views of Cr Burnett-Wake and supported the amendment to the budget, while Councillors Jim Child, Johanna Skelton, Richard Higgins, David Eastham and Fiona McAllister voted against the proposed changes, ultimately succeeding.
“We’re in dreamland if we sit back and think the state and federal government are going to fund recovery, all of it. We as a level of government, do have a responsibility to our residents as well,” Cr Child said.
“I think we can do more benefit to the community with the rate rise, than if we were caught short without the money,” Cr Eastham said.
Highlights to the budget includes $4 million specifically for Covid-19 pandemic recovery grants which includes $1 million for Community Recovery Committees across the Yarra Ranges, where community members will soon be able to make decisions about recovery projects in their area. Council also budgeted for $1.3 million in funding for youth mental health programs to fill an increased need after the lockdowns last year.
Capital expenditure works totals an estimated $73,714,000 for 2021-22 which includes upgrades to footpaths, playspaces, sports and recreation reserves, bike paths and road maintenance.
Council will spend approximately $19 million on roads, footpaths and bike paths, which was listed as one of the highest priorities amongst local residents from a council survey.
