Gloria O’Connor, president, Cardinia Ratepayers andBy Melissa Grant
CARDINIA Shire Council’s spending and rate rises are out of control – and residents will struggle to foot the bill.
That’s the view of Cardinia Ratepayers and Residents Association (CRRA) president Gloria O’Connor, who says the council should’ve taken a more cautious approach when drawing up its 2009/10 budget.
The council has a $44 million debt and will up rates by 5.8 per cent next financial year, as it embarks on a $19 million capital works program.
Mrs O’Connor fears residents would struggle to cope with another rate increase above the CPI. She said the 5.8 per cent rise was excessive, in light of the economic climate and neighbouring Casey’s 4.7 per cent increase.
“I think ours could’ve come in a bit lower,” she said.
“Last year was 5.8 per cent – in an election year.
Mrs O’Connor was concerned the council was following the lead of the state and federal governments in terms of spending.
“Spend more and more and we’ll fix the situation – I think that’s come through to local government level,” she said.
“It’s kind of like a business as usual attitude.
“It’s still very uncertain, the economic situation. I think there’s a case to be a bit careful and see what happens next.”
The council’s $44 million debt will drop $1.4 million over the coming year, but councillors have committed to shaving $8.9 million off the figure over the next four years.
But Mrs O’Connor wasn’t convinced this would eventuate.
“A lot of people have reservations about it, that the debt isn’t going to go down that quickly,” she said.
“The $8.9 million is only a projection, and as Cr Chatwin said, the four-year plan is fluid – they may not be able to pay off the amount.”
She said the council urgently needed to review all of its spending – from the cost of drawing up structure plans to administration costs.
“If you have to trim costs you have to get down to the nitty gritty,” she said.
Mrs O’Connor also had concerns about the council’s division of capital works money, labelling the council’s draft budget as Pakenham-centric.
In opposing the council’s 2009/10 draft budget, Ranges Ward councillor Ed Chatwin estimated that 69.4 per cent of capital works funds would be spent in the growth corridor. He said Bunyip Ward would get 24.9 per cent of the pie, Port Ward two per cent and Ranges Ward just 0.2 per cent.
“It amazed me because Ranges Ward is a large area of the ratepayer base,” Mrs O’Connor said.
“To drive all of the money into Central Ward, the area between Pakenham and Beaconsfield, is something the council obviously feels obligated to do.”
Cr Chatwin and Cr Collin Ross were the only two civic leaders to oppose the council’s draft budget.
Other councillors were satisfied with the 2009/10 capital works program and the 5.8 per cent rate rise.
Mayor Bill Pearson said the budget would deliver the right balance between serving the shire’s record development and ensuring support for families during global financial uncertainty.
NewStart Allowance recipients are eligible for a $50 rebate and interest-free payment arrangements.
Mrs O’Connor said CRRA was in the process of putting forward a submission and urged others to do the same.
“Even a positive submission is better than no submission,” she said.
Submissions will be considered at a special council meeting on Monday 15 June.
Copies of the budget papers can be downloaded from council’s website at www.cardinia.vic.gov.au
