Council wants to hear your feedback on their proposal to increase rates revenue by 2.8% instead of the 3.5% maximum allowed rates cap, to provide financial relief for all ratepayers in response to cost of living pressures. 

Council says “This is the first time we have proposed an increase below the rates cap, introduced in 2016/17. It will not be funded by service cuts. Instead, we will put less into our reserve fund as a buffer for known and unexpected challenges over the next decade”.

The cost of adopting a lower rate rise is about $900,000 in 2023-24 – a very small concession to property owners when Council has a $12 million surplus. Council intends to use the surplus to fund the estimated accumulated impact over the next 10 years which is $11 million less in rates collected. 

We say, use the surplus to support ZERO rates increase.

You can have your say at https://haveyoursay.portphillip.vic.gov.au/council-plan-and-budget 

There are several ways to provide feedback:

• Complete the feedback form by 18 May 2023.https://ropp.org.au/headline-story/
• Talk to Councillors in person at various neighbourhood street stalls. Click here for details.
• Speak at the 7 June Council Meeting: Click here to register.

The proposed rates increase is significant for two reasons. 

• This is the first time since the introduction of the State Government rates cap that Council proposes rates relief – this is in recognition of cost-of-living pressures due to high inflation and interest rates that are hurting the community. 
• In prior years, surpluses were spent on a range of unnecessary pet projects. 

Residents of Port Phillip (ROPP) are disappointed with the small rates reduction and support a zero-percentage increase. ROPP supports zero rates increase because: 

• Port Phillip rates and charges are excessive compared to Stonnington, Bayside and Glen Eira and we want Port Phillip rates to be brought into line with other councils. See https://ropp.org.au/headline-story/
• Port Phillip rates are excessive because council spends more than the surrounding councils that provide similar services.

We spend:

• More than $100M compared to Bayside 
• More than $50M compared to Stonnington and Glen Eira 
  

$12 million surplus should not be used to fund an estimated $11 million funding gap over the next ten years because the amount is not material in accounting terms. The amount is less than 1% of revenue per year over the next 10 years.  

Why does Port Phillip spend much more that the other nearby LGAs when:

• we have a similar population and number of properties
• we are smaller in area and our roads are shorter in length

W don’t have more assets than the other Councils

• Bayside has beaches as does Port Phillip
• Stonnington has the Prahran Market as we have the South Melbourne Market
• Stonnington and Glen Eira have swimming pools and golf courses and Port Phillip does not
• Stonnington has two town halls, and we have three and ANAM (Australian National Academy of Music) is helping to fund the South Melbourne Town Hall?