Total rates collected by Council on existing properties are set to increase by 3.5% in the 2023-24 Budget, in a year in when residents are impacted by the highest cost of living increases for many years. In addition, Council will receive millions of dollars in new rates from new properties. 

The Residents of Port Phillip (ROPP) are advocating for a rate freeze following two unsuccessful attempts at advocating for a rate freeze in prior budget years. A rate freeze is only possible if five Councillors vote for a freeze. 

Port Phillip Councillors previously voted to increase rates by the maximum allowable amount (1.5% in 2021 and 1.75% in 2022). Councillors that voted for a rate rise in 2022: Cr Cunsolo, Cr Crawford, Cr Martin, Cr Copsey & Cr Baxter. Those who voted against it were Cr Clark, Cr Sirakoff, Cr Bond & Mayor Pearl.

The only positive for residents was a motion passed by Councillors requesting Council Officers to identify options for ongoing cost reductions that would enable Council to consider adopting zero rates increase in financial year 2023/24. Cr Baxter and Cr Copsey voted against this motion. 

The CEO was required to identify cost saving options by the end of November 2022 for implementation in the 2023/24 budget. Council Officers failed to identify sufficient savings and efficiencies to allow for a rate freeze. The results of the cost review were tabled for the Council meeting on 15^th February. See Agenda of Meeting of the Port Phillip City Council - Wednesday, 15 February 2023. 

Council massively increased its spending by $25M in 2022-23 rather than giving residents rate relief which would have only cost 1% or $2.4M of the budgeted expenditure. Surely Council could have found 1% efficiencies or cost savings to deliver rates relief? 

Port Phillip Council has budgeted to spend $247M in 2022-23, an increase of $25M or 11% from the prior year. Most of the increased spending resulted from employment costs increasing by $6.9M ($92.2M to $99.1M) and materials and services increasing by $13.1M ($83.5M to $96.4M). 

Source: Pages 41-42 Volume 2. https://www.portphillip.vic.gov.au/about-the-council/council-plan-and-budget

Facts

1. Port Phillip rates and charges are excessive when compared to our three neighbouring local government areas. For example, the rates and charges for a median house priced at $1.85M in Port Phillip are $3,252 which is $1,100 more than Stonnington, $900 more than Bayside and $685 more than Glen Eira.  

2. The reason for excessive rates is that Port Phillip Council spends significantly more than surrounding councils, for similar services. Port Phillip's costs are approximately 30% higher than Stonnington and Glen Eira, and 100% higher than Bayside. 

3. Port Phillip does not need to spend more than other local government areas because it is "different”. Port Phillip is like neighbouring areas in terms of size, population, and the number of properties. Bayside has beaches as does Port Phillip. Stonnington has the Prahran Market as Port Phillip has the South Melbourne Market. Stonnington and Glen Eira have swimming pools and golf courses and Port Phillip does not. 

4. Port Phillip spends more than other councils because of the Council’s decisions, not out of necessity.