Rates hike stirs anger

KIM WATERS
Borough of Queenscliff’s second “significant” rates rise in two years will increase financial burdens on struggling families, according to a former councillor.
Queenscliff Community Association member David Kenwood suggested councillors should instead enforce a charge on gaming machines in the borough as an alternative to “continually raising rates”.
Mr Kenwood pointed out that Queenscliff had “more gaming machines per capita than anywhere else in Victoria”.
“What we’d like to see in the budget is some thoughts on how we can decrease the financial impact on households and look at some other possibilities, like a charge on gaming machines.
“It’s always difficult when local government continues to increase rates year after year, particularly when people are facing difficult times with increased electricity, gas and water charges.”
The borough has unveiled a proposed 4.5 per cent hike for 2011/2012.
The Independent reported last year that a 5.5 per cent rate hike had prompted residents to demand council peg rates to the Consumer Price Index (CPI) measure of inflation.
Mr Kenwood said an increase above a 3.3 per cent CPI “couldn’t be justified”.
“Pegging municipal rates at CPI would give people time to catch up financially,” he said.
“Council is in $1.2 million of debt and that’s essentially a debt for their new office and their staff. Traditionally Queenscliff had no debt and when I was a councillor the borough was virtually debt-free.
“There’s a lot of community concern about the ongoing debt we now have to cover.”
In a 2011/2012 budget document Mayor Bob Merriman admitted the borough was struggling to minimise rate hikes.
“Ensuring the commitment to minimal rate increases also continue to be a challenge for the borough, with reliance on rates as the primary source of funding growing as external funding becomes more and more uncertain as state and federal priorities are influenced by competing demands,”
Cr Merriman said.
“The rate increase proposed for the 2011/12 financial year is 4.5 percent. Note this is the budgeted increase in total rates revenue, which will ensure council maintains existing service levels, funds a number of new initiatives and continues to allocate additional funds to renew the borough’s infrastructure.”