WHITTLESEA households reeling from rate rises could face further hikes to cover an unexpected $6.8 million superannuation shortfall for council workers next year.
Cr Mary Lalios said the increase could be about 12 per cent because of the superannuation blow-out and other costs.
She said even this year’s rise of 5 per cent, coupled with new house valuations, had seen homeowners out of pocket by hundreds of dollars.
She said a Bundoora pensioner with a modest three-bedroom house had an $800 rate rise – from $1100 to $1900 – because of the revaluation.
Cr Lalios, who was speaking at council last week in support of her motion for rate relief for pensioners,
warned rates could rise by almost
12 per cent next year with the superannuation shortfall, carbon tax and landfill levy amounting to an 8.8 per cent rate rise along with a modest
3 per cent general rate rise.
Whittlesea has to make up $6.8 million to help top up a $396 million shortfall shared by councils in the Local Authorities Superannuation Fund Defined Benefit Plan. The plan was hit by the global financial crisis and councils must make up losses.
Mayor Steven Kozmevski called for legislation to remove the requirement for councils to top up defined benefits every time there were shortfalls.
“Unlike accumulation superannuation schemes that are the norm today, a defined benefits superannuation scheme requires councils to ensure 100 per cent funding,” he said.
He said the $6.8 million superannuation shortfall was not due until July, 2013, and council had not yet worked out a repayment plan.
