Hume council could be forced to pay millions of dollars in subsidies to a stand-alone Sunbury council as the Liberal Party plans to base the new council on a similar model to the one proposed four years ago.
Liberal candidate for Sunbury Cassandra Marr confirmed a Coalition government would create the new council using similar financial modelling to that used in 2014 when the Napthine government gave the go-ahead for Sunbury to split from Hume.
Under the previous modelling, Hume council was required to pay $24 million in subsidies to Sunbury council for the first 10 years of its existence.
Ms Marr said she could not rule out Hume council being asked to pay a subsidy.
The revelation comes as Hume councillors raise concerns about the Liberal’s plan to split Sunbury from Hume if they win the state election.
The councillors recently wrote to Ms Marr and Liberal candidate for Yuroke Jim Overend, seeking an assurance that Hume residents would not have to subsidise the new council.
The council said it has been kept in the dark about the proposal, despite writing to Opposition Leader Matthew Guy earlier this year and asking to meet him.
Deputy mayor Carly Moore said it was time for the Liberal Party to provide clarity on how Sunbury council will be created and what the financial implications may be.
“The previous council went through this process and the previous audit in council included a cross subsidy of over $24 million that Hume would pay to the new Sunbury council … I also know that all of the different reports on this matter have stated an initial start up cost of between $3-$5 million,” she said.
“What I seek from [the candidates] is that no such subsidy or financial penalty will exist for the residents [of Hume].”
Ms Marr said a Coalition government would ensure there was a fair distribution of assets between Hume and Sunbury councils.
She also rejected suggestions that rates in Hume and Sunbury would have to increase beyond the rates cap as a result of the split.
Ms Marr told Star Weekly a Coalition government will base Sunbury council on the same boundaries as previously proposed, taking in Sunbury and Bulla.
“This will be something we will start work on in our first 100 days of government with an aim to get it up and running as soon as possible,” she said.
