Well the budget is looming and my first as a Kentish Councillor. This is a testing time. I think rates need to go up significantly.
Here are few reasons why.
- Our cash balance is becoming uncomfortably low due to a backlog of capital works actually being completed
- We are not putting enough money aside to maintain our current infrastructure
- Sheffield and Railton streetscapes both will need significant cash to complete
We are up against it in Kentish on a few fronts.
Kentish has 110 bridges to maintain (Latrobe has 28). Kentish has 485 km of sealed and unsealed roads to maintain (Latrobe has 282 km). Kentish has 3461 ratable properties to pay for all this (Latrobe has 5065 -1604 more properties that pay rates to maintain their infrastructure). So for people who compare the rates between councils they need to compare not just the rates but the infrastructure that needs to be maintained and the amount of ratable properties that are available to service these expenses.
Given inflation figures just released for the March quarter are 4.2% councils can realistically be looking at an increase of around 4.5% for the services that it needs eg construction. So we will pay more money for the same service. If we factor in the doubling of the price of a barrel of oil in the last 12 months we can see that council (and all of us) are in for hard times ahead.
Traditionally councils either increase rates or decrease services to deal with financial difficulties. Federal grants can help to offset some costs. With the new Labor government talking tough on spending cuts I feel that grants will become harder to get hold of.
Getting rid of some assets needs to be considered. Underutilized buildings that cost a heap to maintain.
As a councillor I am a steward of the communities assets including the finances. We need to stay in the black.
One thing we need is more ratable properties. Bring on subdivisions and encouraging developers in this.
Council finances are complex and a challenge to me. I take this seriously.