Shire dumps levy

By Paul Dunlop
RATEPAYERS will get a $50 bonus after Cardinia Shire Council voted to scrap its controversial municipal levy.
But the benefits are likely to be shortlived because councillors have already conceded that a rates hike may be the only way to cover the lost revenue.
In a prebudget bombshell delivered amid hot debate at a meeting on Monday, councillors voted fourthree to abandon the levy introduced almost three years ago.
Mayor Kate Lempriere’s casting vote decided the result.
Cr Lempriere voted alongside councillors Bill Ronald, Brett Owen and Ed Chatwin, whose push fulfilled a promise made before the 2005 election.
Cr Bill Pearson, who had previously opposed the levy, was among the councillors who spoke against it being removed, saying the timing was not right.
The decision will cost council up to $1.3 million in revenue. It came as council prepares to shape its budget for the new financial year and illustrated division around the table as to the best way to raise money enough to meet the fastgrowing municipality’s needs.
Cr Chatwin, who raised the issue in notice of motion, said it was time for council to be “up front” with ratepayers.
He said Cardinia’s rates were artificially low and that the State Government was not doing enough to help.
If council had to raise rates or borrow more money to move forward, so be it.
“A municipal levy is not the way to go,” he said.
Cr Chatwin was supported by Cr Ronald, who said the levy did not differentiate between those who could afford it and those who could not.
“It’s a very unfair tax on ratepayers,” he said.
The levy on all rateable properties in the shire was initially $100 before it was halved last year.
But Cr Pearson said scrapping it outright would be irresponsible at a time when the shire’s finances were tight.
“I don’t believe we can possibly justify removing $1.3 million in revenue,” he said.
Councillors Doug Hamilton and Graeme Legge also voted against the move.
Crs Legge and Pearson both said the issue should be considered as part of wider budget deliberations.
Cr Hamilton said the shire was growing at an enormous rate and needed the money the levy raised.
After all councillors had a say, the debate was delicately poised at threethree until the mayor gave her casting vote.
Cr Lempriere said it was a difficult decision but one made in the interests of all ratepayers.
She agreed the timing was not perfect but said once presented with the issue it was up to council to decide. She said the levy was a greater impost on some ratepayers than others but forecast the only way to recoup the lost revenue was to increase rates.
“I know some councillors made an electoral promise, I didn’t make a promise,” she said.
“I can’t see for the life of me how we cannot increase rates after approving this but that is another argument for another day. I agree the $50 levy should be abolished,” she said.