The state Labor Party has “serious questions” about a new city of Sunbury as the Napthine government moves to “gazette” the new municipality before November’s state election, according to its local government spokesman, Richard Wynne.
While gazetting the break from Hume cannot prevent an incoming Labor government reversing the decision, Mr Wynne said he respected the plebiscite of ratepayers a year ago that gave a green light for Sunbury to secede.
But he said the panel appointed to advise Local Government Minister Tim Bull of the viability of setting up a new municipality “reinforced concerns” about the economic viability of splitting Sunbury and Bulla from the City of Hume.
Mr Wynne said the panel report highlighted that even a $3.5 million annual subsidy from Hume to the new Sunbury municipality for the next 10 years meant rates in Sunbury would rise more than 7 per cent.
“That’s double the rate of inflation,” Mr Wynne said. “It has to be confronted, in that this subsidy for the next 10 years comes with the expectation that the population will grow to a level that makes Sunbury sustainable on its own. We have serious questions about that.”
Mr Wynne said Hume council was rightfully concerned that losing $3.5 million of its rate base each year to prop up the new municipality would be a significant blow to its budget.
“It has the potential to raise rates and the service costs,” he said.
The Sunbury out of Hume Panel report is available at www.dtpli.vic.gov.au/localgovernment
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