HORSHAM Rural City Council will put the funding of local government on the agenda for the Municipal Association of Victoria’s state council.
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Community relations and advocacy co-ordinator Susan Surridge, in a report, said the council would request the MAV advocate for a review of the local government funding model.
The MAV is the peak advocacy group representing local government in Victoria.
See pages 28 to 30:
Mrs Surridge said the council would ask the MAV to lobby to change legislation to allow Fire Services Levy money to be used for the maintenance and renewal of firefighting infrastructure. The council will call on the MAV to lobby the state government to retain the mode shift incentive scheme, which was designed to support more freight on rail rather than road.
Mayor Pam Clarke said a complete review of the local government’s funding model was needed.
“It won’t be long before we find councils in deep financial stress and become unsustainable,” she said.
Cr Clarke said the fire services levy was an example of a cost-shifting exercise from the state government.
“The council collects the money and it is sent off to the state government, but we don’t see any of it,” she said. “There are CFA services that councils have to maintain and the fire services levy should be going towards protecting that service.”
Cr Clarke said the mode shift incentive scheme renewal would create certainty for businesses.
“I think we need a four-year (commitment) because at the moment it is year-by-year and there is no certainty for big businesses that are trying to survive on the rates they get at the moment,” she said.
Cr David Grimble said a review of the local government funding model was “extremely important” because there was angst around rating strategies and outcomes. He said local government needed to attract more funding from other sources.
“This is not a new conversation, but it should be ongoing to address the situation that is diabolical for local government,” he said. “Local government needs more money from other sources.”
Cr Grimble said the mode shift incentive scheme would ensure that rail was a competitive transport mode.
Cr Alethea Gulvin said the funding model for local government was unsustainable.
“It is unfair that the burden is thrust on to local government rather than the state and federal government alleviate the pressure,” she said.
Cr John Robinson said Victorian firefighting fleets were well-below the standard of other states.
“The Victorian fleet can get up to 30 years old before being replaced whereas in NSW they reach 15 years old,” he said.
Crs Mark Radford and Josh Koenig said the motions submitted were relevant and important.
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