By GEORGIA WESTGARTH
THE Essential Services Commission (ESC) has denied Casey Council’s application for a rate cap variation, with its rates capped at 2.5 per cent.
The City of Casey applied for a higher cap of 3.47 per cent, 0.97 per cent higher than the set cap for 2016-’17.
After assessment the ESC blocked the council’s application on the grounds of a strong budget position.
A statement from the ESC read:
“The Commission found Casey’s overall budget position to be strong with various options available to proceed with the two projects it identified, without requiring a higher rate cap in 2016-’17.
“There is flexibility in Casey’s large capital works program and it has been granted additional funding of $2.5 million as part of the Interface Growth Fund.
“This frees up funds equivalent to $2.5 million which could be used to fund other capital projects, possibly including those made the subject of the higher cap application.
“In addition, Casey has historically underspent its capital budget by an average of $14 million per year.
“This further suggests it has the financial flexibility to manage delivery of the two projects identified in its application without requiring a higher rate cap in 2016-17.”
In the council’s application to the ESC the Hunt Club Football and Cricket Recreation Facility and the Autumn Place Family and Community Centre were identified as the two capital projects unable to go ahead without the rate cap variation.
Casey Mayor Sam Aziz fired back at the ESC after the announcement labelling the decision “economic vandalism”.
“This is short-term petty politics that will lead to long-term harm for the residents of the City of Casey,” Cr Aziz said.
“A future State Government will modify this policy and residents could be facing double digit rate increases to make up for the infrastructure shortfall to continue build a first-class city.
“This is another unacceptable act of economic vandalism by the State Government who are happy to deprive Victoria’s largest and one of Australia’s fastest growing municipalities of a mere $1.6 million, across a whole year to fund critical infrastructure, while wasting $1.1 billion not building a road that Victorians desperately need.”
Six councils were approved for a rate cap increase for 2016-’17, including: Buloke Shire Council 3.05 per cent, Horsham Rural City Council 3.5 per cent, Moorabool Shire Council 3.5 per cent, Murrindindi Shire Councila 4.3 per cent, Pyrenees Shire Council 3.8 per cent and Towong Shire Council 6.34 per cent.
Commission Chair, Dr Ron Ben-David, said that, in approving the higher caps for the six
municipalities, the Commission needed to satisfy itself that higher rates were consistent with the long-term interests of their communities.
“We considered each council’s application on its merit,” Dr Ben-David said.
“We approved applications where the councils could clearly demonstrate a long-term financial need, supported by well-developed long-term plans.”
