The federal government provides ongoing funding to municipal governments, generally on a per-capita basis with additional money for road repair.

The amount of money provided each year has been frozen since 2014-15, declining in real terms as inflation rates increase.

Combined with the Victorian Government’s rates rise cap, the federal grants freeze has put many municipal governments under financial pressure.

The federal government provided more than $542 million to Victorian municipalities in 2016-17 through the grants scheme.

Horsham councillors voted on Monday night to contact Mr Broad and to encourage concerned ratepayers to contact their member of parliament.

Corporate services director Graeme Harrison told councillors that Horsham council has lost $500,000 since the freeze was implemented, and the annual impact had reached $300,000.

“The impact could easily be significantly more if Consumer Price Impact were to increase above the current low levels experienced over recent years.” Mr Harrison said.

Cr Alethea Sedgman said ratepayers needed to be aware of the grant freeze’s impact.

“I don’t think its fair that we keep being burdened by things that we can’t control,” she said.

Municipal government representative bodies are currently campaigning for more federal funding on a state and national level.  

Cr Mark Radford said asked for clarification on the freeze policy.

“My understanding is that it was the new government’s response to repairing the budget,” Cr Radford said.

“It wasn’t put there for no reason. We have not lost the grants. What we have lost is the indexation, which they said they were going to restore.”

Mr Harrison said the members of parliament have told municipal governments that the indexations would not ever be restored.

“The Minister for Local Government has said the freeze will remain for a year or more,” he said.

Mayor Pam Clarke said she was concerned by comments Mr Broad made at a North-West Municipalities meeting.

“He said he would not support grants. He would prefer to support definite funding like roads and bridges,” Cr Clarke said.

“He didn’t seem to think councils were responsible enough to spend the money, which was very, very disappointing.”

 Cr Clarke said the councillors and directors at the meeting were quite incensed by Mr Broad’s comments.

 “We need to make sure our voices are heard,” she said.

Mr Broad said municipal governments had received enough new funding.

“With $40m Roads to Recovery grants, $4.5m drought grants and $23m building better regions grants, councils should not complain,” he said.