Hume council 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.
The state government will peg rate rises to the consumer price index (CPI) from this year, with increases beyond that needing a green light from the Essential Services Commission.
A list released by the ESC last week 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.
It said at the time this would be “due to the resourcing constraints and uncertainty” over the possible formation of a new Sunbury council.
Cr Jack Medcraft said he was surprised at the number of councils listed.
‘‘Hume’s probably in a better position than most because we’re well controlled budget-wise,’’ he said.
‘‘If you can’t tighten your belt and get it together there’s something wrong. I think councils will probably ask the government to take back some of the services they’ve been handing to councils.”
Earlier this month, Hume mayor Helen Patsikatheodorou said the cutbacks to future revenue had the potential to impact infrastructure projects and services with “ongoing expenses”.
