Council rates are likely to rise significantly as a result of the federal budget freeze on indexing local government grants, according to the state’s peak body for local government.
The Municipal Association of Victoria (MAV) said $5.65 million was missing from the first quarterly payments distributed to councils last week.
“We have known since May that these cuts were coming,” MAV president Bill McArthur said.
“Some councils have had to take extreme measures, like scaling back road maintenance and other council services, to make up for the shortfall.
“Councils are responsible for $73 billion worth of infrastructure and financial assistance grants have [enabled them] to fund this, maintain 85 per cent of the state’s road network and pay for crucial community services like libraries, swimming pools, and parks.
“These cuts will force councils to reassess their budget options.
“Some councils may increase rates but this funding loss leaves communities vulnerable to scaled-back services.”
Victorian Liberal Senator Scott Ryan said Hume council received $12,893,669 for its first-quarter grant, while Whittlesea council got $12,591,307.
“Councils can spend this untied grant funding according to local priorities, including for infrastructure, health, recreation, environment, employment and roads projects,” he said.
