No rate cap exemption

Mitchell Shire Council will not apply for a rate cap exemption this year and will work with the community to redefine core services.

To meet the cap, Council will need to change staffing levels, operating costs, fees, user charges, services and infrastructure.

Community input on rating scenarios of 2.5 per cent and 4.5 per cent was sought in February. As part of this, Council identified potential options for $633,000 in savings needed to meet the cap for the first year and $44 million over 10 years.

More than 900 responses were received with 83% supporting 2.5 per cent or lower despite consultation last year which showed stronger support for a larger increase.

Mitchell Shire Mayor Councillor Sue Marstaeller said the community had sent a clear message in the latest consultation which Council had acted on.

“Council sought community input on whether they would prefer to maintain services and capital works with a modest increase in rates or whether would accept a cut to some of these to limit rate rises to meet the cap,” Cr Marstaeller said.

“The community has sent a clear message and Council won’t apply for a rate cap exemption. This means the coming budget will include reductions to grants and operating hours for customer service, libraries and leisure centres to contribute to the $633,000 needed for 2016/17.

“Other operational cuts will be identified to allow school crossing supervision, existing fire prevention activities and the infrastructure projects in Broadford, Seymour and Wallan which were also listed for potential reduction to proceed.”

Cr Marstaeller said the ongoing goal of financial sustainability had not changed, but the initiatives to achieve that goal would need to be revisited with the community to help continue to turn Mitchell around.

“Council has already delivered $1 million in ongoing savings for 2015/16 including reductions to senior staff and other roles. A further $2 million will be identified for the coming budget as well as an added $2 million in 2017/18 to be reinvested in infrastructure. The rate cap means we will also need to find savings in subsequent years,” she said.

“I would like to thank the community for being involved so far and encourage them to continue to work with Council to redefine core business and look at more efficient ways of operating.”

Council will be releasing its draft budget in April for community input which will outline proposed actions for 2016/17. Council will also be preparing a wide range of activities to help inform longer term decisions.