Geelong’s council has withdrawn its application to break the State Government’s rates cap.
The council had applied to levy a 3.5 per cent charge, one per cent above the cap, but dumped the bid today after identifying savings of $1.7 million to cover the difference in revenue.
The decision will save residential ratepayers around $12 on average for their next rates bill compared to what they would have paid if the cap was exceeded.
Geelong’s sacked council applied to the Essential Services Commission for the higher rate in January but the council’s replacement, interim administrator Yehudi Blacher, decided to withdraw the application today.
City chief executive officer Kelvin Spiller said the identified cost savings were: $800,000 deferred from the cancellation of council elections in October; a saving of $100,000 in allowances for the sacked councillors; and a deletion of $400,000 in non-capital projects.
“These savings of $1.7 million offset the $1.6 million council had planned to raise through a 3.5 per cent average rate rise,” Mr Spiller said.
“At the same time, we remain confident of delivering a balanced and financially sustainable budget for 2016/17.”
Mr Blacher considered the rate application in special meeting of his one-man council.
“Based on this revised financial outlook, this afternoon I formally endorsed the withdrawal of council’s earlier application to the ESC for a 3.5 per cent average rate rise for 2016/17,” he said.
The council’s proposed budget for 2016/2017 will be tabled for public consultation at the next ordinary meeting of council, at 7pm on 10 May.
