YARRIAMBIACK Shire Council hopes an auditor-general report that labels the shire as financially unsustainable will lead to more support for local government.
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The Victorian Auditor-General’s report found Victorian councils face challenges in relation to their financial sustainability, resources, capability and the increasing expectations from their communities.
It found both Yarriambiack and Buloke shires had a high financial sustainability risk.
Yarriambiack chief executive Ray Campling said the report identified the shire was heavily reliant on government grants.
‘‘This is something we already knew and is a common situation for most small rural municipalities,’’ he said.
‘‘The only form of income we have is available through rates and it is not fair to increase these to meet community needs and expectations.
‘‘We also rely on government grants, which are obtained through taxpayers dollars, and we are entitled to our fair share of that.’’
Mr Campling said local government only received 3.2 per cent of the tax dollar.
‘‘Hopefully this report identifies the local government needs further injection from the federal and state governments to support our communities,’’ he said.
‘‘At the end of the day, for all levels of government the major priority is the welfare of the people in the community.
‘‘It is inappropriate for councils to increase rates to meet the ever widening financial gap.’’
Mr Campling said council was challenging itself to spend money more efficiently.
‘‘We are trying to do more with less,’’ he said.
‘‘In saying that, we must maintain the services we provide to the community.
‘‘Indication from community consultation meetings show the community understands the situation we are in, but would like services to continue.’’
A new state government plan will see council rates capped, from 2016, at the consumer price index. Councils will have to justify any increases above the rate of inflation.
Mr Campling said the shire’s financial situation would be even more challenging going forward.
‘‘However, with challenges comes opportunities,’’ he said.
‘‘This will make us more critically aware and analyse what we do in more depth.
‘‘Local government provides a lot of services that the federal and state governments cannot.’’
Mr Campling said council was confident about its situation going forward.
‘‘We have great staff and great councillors,’’ he said.
‘‘It will be a challenge going forward, but we are more than capable of meeting that challenge.’’