Sound financial stewardship is needed, not political stunts.

Opinion

Many people in Port Phillip are doing it tough.

Too many of us are paying more than 30% of our income in rent or mortgage payments.

Our Council needs to step up and provide real support:

• For vulnerable tenants
• For property owners facing mortgage stress
• For more local community housing in the midst of a housing crisis by partnering with state and Commonwealth governments, community housing agencies and others.

We need a strong Council budget to be able to do this.

Something Progressive Port Phillip has consistently argued for in budget submissions. More support for vulnerable renters and targeted payment plans, rate deferrals and modest rebates for financially stressed owners.

Freezing rates across the board would punch a $40 million hole in Council’s capacity to deliver basic services in coming years. That’s on top of $10m shaved from Council’s forward budget last year.

A $50m reduction in Council’s forward budget would smash Council’s ability to meet ageing local infrastructure needs – like upkeep of local streets and foot and bike paths, drains and parks.

And puncture Council’s capacity to provide vital childcare, youth and aged care services; to take local steps to protect our homes and community from damaging climate change; to re-invigorate our shopping villages and support a dynamic arts scene.

A rate freeze in one year has a compounding impact on Council’s budget in future years.

It severely reduces the revenue base to meet rising costs, such as wages and capital works, over time.

And therefore Council’s ability to properly fund services into the future.

In 2021-22 at the behest of some councillors, an exhaustive review of Council’s costs and services occurred.

Every area from road maintenance to community services to local parks was examined for ongoing savings, with all councillors deeply involved in every stage of the process.

No significant savings could be found. Only a token cut in arts programs was made to satisfy the rate freeze gods.

This has not deterred further attempts at crafting some budget magic, however.

A freeze is being pushed hard by Ratepayers of Port Phillip endorsed candidates and by some other candidates too.

Renters make up 50 per cent of all households in Port Phillip – and get no benefit from an across the board rate freeze. But owners of rental properties would benefit.

Seventy percent of properties in Port Phillip are valued at $1m or under – we would get a one off benefit of a couple of dollars per week.

The bulk of any benefit would go to owners of the ten percent of properties in Port Phillip valued at $2m or above.

Since 2016, when the Victorian government introduced an annual cap on rate increases, rate revenue for councils across the state is 30 percent below the Consumer Price Index.

We need a Council with care, compassion and community at its centre.

Sound financial stewardship is needed, not political stunts.

A rate freeze benefits the few at the expense of the many.

And radically reduces the capacity to build a fairer, safer, sustainable community for all.