Hume mayor Helen Patsikatheodorou says state and federal governments may need to take back some of the services they’ve been handing to councils.
Cr Patsikatheodorou said the state’s decision to peg council rate rises to the consumer price index (CPI) from this year had the potential to impact infrastructure projects and services.
She said over many years, councils had picked up funding for a large number of programs abandoned or limited by other levels of government.
‘‘We’re carrying a number of different programs that used to be funded … that money was pulled and council thought those important programs needed to continue,’’ Cr Patsikatheodorou said. ‘‘It would be really unfortunate if some of them had to go.’’
As reported by Star Weekly online, Hume is likely to face tough choices in its next budget, with the municipality not among 21 councils to have flagged the possibility of seeking to lift rates by more than a 2.5 per cent cap.
All increases beyond the CPI will need a green light from the Essential Services Commission.
A list released by the ESC revealed that more than a quarter of Victorian councils have flagged they could apply for an exemption to lift rates beyond the cap.
They include Melbourne, Maribyrnong, Mitchell, Yarra and Wyndham.
Hume was not on the list, despite previously saying it would lose $37 million over four years if rates were capped to the CPI. In a submission to the ESC last August, Hume council said it would seek an exemption from rate-capping measures for two years.
Burden shift to councils
Cr Patsikatheodorou said councils were increasingly being relied on to fund programs such as health and community care, meals on wheels and school crossing supervisors.
‘‘You can’t keep asking ‘give us more, give us more’,’’ she said. ‘‘There’s a whole lot of other add ons, we’re collecting the fire levy …the community doesn’t always know and they think it’s all us.”
Cr Patsikatheodorou said the council had until the end of the month to apply for an exemption.
‘‘We’ll continue to consider it seriously,’’ she said. ‘‘If we don’t apply, we’ll be looking at the whole council structure and seeing where we can make savings.’’
