The dire financial plight of local councils has been laid bare in a Parliamentary Inquiry.
Councils are being hit by a lack of funding and cost-shifting under the Allan Labor Government and finding it increasingly difficult to balance their books.
Taxes have soared, yet local councils are receiving a smaller slice of the overall funding pie.
Brimbank City Council painted a grim picture to the Inquiry into Local Government Funding and Services.
When asked ‘How concerned are you about the long-term financial sustainability?’, Director of Corporate Services at Brimbank City Council, Mark Stoermer, replied: “I’m concerned that if we don’t do anything it’s unsustainable”.
“There’ll be a day of reckoning,” Mr Stoermer said.
Murrindindi Shire Council CEO Livia Bonazzi told the Inquiry the current funding models were “outdated” and “inequitable”.
“Murrindindi Shire Council is not viable, let alone allowed to thrive under these conditions,” Ms Bonazzi said.
“When we look at the 10-year horizon, we cannot continue to sustain operating deficits.”
“Our community is already paying more than their fair share in rates, we are already enduring lower services, we are trying to sharpen our pencil on having very efficient services and operations and our cost to service is actually very, very low. The only solution is increased grant funding.”
Shadow Minister for Local Government, Peter Walsh, said costs have risen and the obligations of local councils had also gone up.
“This situation cannot continue. Local councils play an important role for human services that serve for our communities,” Mr Walsh said.
“It is incredible that the Allan Labor Government increases taxes, yet ignores the funding needs of local government.
“We must prioritise the financial health of our councils to protect the services that families depend on every day.
“Labor can’t manage money and Victorians are paying the price.”
