News
Rate bills warning

by Emma Ballingall
Ratepayers should expect "rate bills will be through the roof" when a new levy is introduced, Baw Baw Shire mayor Danny Goss has warned.


Speaking on an independent review of council's financial position, Cr Goss assured ratepayers "we will do what we can to make the budget sustainable and look to the future."
He said council faced "difficult discussions to come and tough decisions to be made" but effectively would not benefit from a new emergency services levy added to rates notices by the state government.
Cr Goss' warnings came as data showed building permits, businesses and residential lot development all on the rise in Baw Baw during the October to December period.
Reviewing the data in a combined quarterly report, Cr Paul Pratt declared "people are coming" but "it's clear we don't attract the level of funding that our rapidly growing shire needs and deserves."
There were 187 new housing lots created in the three-month period. Council also issued 378 building permits, a 42 per cent increase from 2023. The average number of building permits issued was 116 per month this financial year, an increase on the 92 per month in 2023/24.
In addition, Baw Baw now has 6864 businesses as of December, a 17 per cent increase compared to the same time last year.
Cr Pratt said council now had statistics to demonstrate growth to both the state and federal governments.
Cr Goss said council was gaining "very little support" from the state government "and yet people are being sent out here in droves."
"Effectively we don't make any money out of new rates for new people coming into our area, and we have to provide the infrastructure," he said.
Cr Pratt described the independent review of council's finances as "eye-opening."
The review, conducted by MIK2 Consulting Services, noted council "performs soundly" but significantly had a relatively low level of cash funds, low levels of reserve funds, low working capital in comparison to other councils and moderate debt levels.
Cr Pratt said it was clear council didn't have significant cash reserves to cover infrastructure needed, didn't generate significant cash surpluses each year and didn't attract the external funding required.
"I don't think there's a magic bullet but I do think we have options in this space, along with some challenging decisions to make," he said.
Cr Kate Wilson said the report offered her a deeper understanding of where council stood.
Emphasising council was in a sound financial position, Cr Wilson said "the future state of local government, as a whole in its financial sustainability, is really a sobering picture."
She believed advocacy would play a big role in improving council's finances as would reinstating contributions wound back by other levels of government.
"It gives us some clarity on what we can focus on in our term," Cr Wilson added.
Cr Tricia Jones said it was disappointing to see Baw Baw performing below average when compared to similar councils.
"While our long-term financial model is sound, the review highlights an ongoing trend of deficits, indicating that we are not operating in a financially stable manner over the long-term," Cr Jones said.
"We are currently addressing these concerns in our budget workshops," she added. "We are discussing options and determining the best path forward."

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