Vic: Council rates to rise: report

AAP General News (Australia)
04-22-2003
Vic: Council rates to rise: report

MELBOURNE, April 22 AAP - Victorians reportedly face large increases in council rates
this year to cover a string of financial disasters that have hit the state's municipalities,
including a $114 million superannuation black hole.

According to The Age, home owners and businesses have been warned to expect rate increases
of more than 5 per cent for the 2003-04 financial year in most regions and rises could
exceed 10 per cent in some.

Municipal Association of Victoria chief executive Rob Spence reportedly said councils
were facing their toughest financial year since he entered local government in the 1980s.

He said councils would have to add about 5 per cent to their rates just to cover unforseen
costs including a superannuation shortfall.

The Local Authorities' Superannuation Fund is demanding money from councils to cover
a shortfall left by a 35 per cent collapse in international share prices, the paper said.

Other expenses include an expected 30 per cent rise in public liability insurance,
a minimum 17 per cent increase in metropolitan fire levies and a large bill to meet new
WorkCover rules on garbage and aged-care workers.

Hobsons Bay mayor Bill Baarini reportedly confirmed large increases were on the way.

"A council managing its business prudently could expect a rate increase of 4 to 5 per
cent as a result of the super shortfall and other levies, on top of the normal increases
for the provision of services," he said.

AAP ag/rs

KEYWORD: RATES

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