A Goulburn businessman says he's yet to be convinced that a council rate rise is needed.
Subscribe now for unlimited access.
$0/
(min cost $0)
or signup to continue reading
CBD property owner, Paul O'Rourke, argues that Goulburn Mulwaree Council's proposal to raise rates by up to 51 per cent over two years will hurt the sector and the community generally.
"It will have a huge impact on business in the CBD," he said.
"On one of my places, the rates will increase by 55pc. A land revaluation every three years adds to that. Most business people share my view...If it goes ahead, the main street will become unsustainable and people will go elsewhere."
READ MORE:
He said while there was "some argument" for a more modest rate increase, 51pc "wasn't sustainable."
Mr O'Rourke told The Post he was confused by the council's inclusion of asset depreciation as a book entry and not a cash entry. He believed this gave a "false impression" of the council's general fund.
However the council's corporate services director, Brendan Hollands, previously said that unlike business, local government could not write off depreciation. In addition, the state government required that assets be depreciated at 100 per cent of renewal costs.
Depreciation represented $28.7m in 2022/23, an increase of almost $5.4m on the year prior, according to draft general purpose financial statements presented to the October meeting.
Mr O'Rourke also maintained that the council's allowance for grants in 2024 was low, based on historical levels.
"It seems to be selective and is not giving us the full picture," he said.
The council says the rate rise is needed to avoid successive deficits of $9.7 million in the general fund.
Goulburn accountant, Nina Dillon, who organised Saturday's rally, has disputed these figures.
Council CEO Aaron Johansson has declined further comment on claims about its finances. The organisation is referring people to its backing report by consultant, Morrison Low, available on the council's website.
"People are struggling"
Meantime, The Goulburn Group has expressed its concern over the rate proposal.
"This is a huge increase to spring on ratepayers at a time when many people are struggling with the cost of living," vice-president Mike Steketee said in a statement.
"Our members find it difficult to understand how the situation has suddenly arisen to justify an increase of this size."
"Even though the operating profit included capital grants of over $30 million, there was still a profit after that of approximately $10 million and there's no reason to assume there will be zero grants in 2024," Mr Fraser said.
"One of the problems is that the 2023 accounts have not been released, so we have no real idea of exactly what the financial situation is."
Mr Fraser's surplus figure referred to consolidated accounts, including general, water and sewer funds. Mr Hollands previously said that any extra rate money had to go into the general fund to avoid deficits in that area. General fund revenue is used on roads and other necessary maintenance. Under legislation, water and waste fund revenue can only be used for those purposes, not general expenditure.
The draft 2023 general purpose statements were tendered to the October 17 council meeting. Mr Hollands said these were yet to be audited, a process which had been delayed by asset valuers. He hoped to present the audited report to the November 21 meeting but if not returned in time, it would be considered on December 19. Councillors will be faced with a decision on the rate rise on November 21.
"With the council already operating at a profit, together with more than $100 million in the 'bank', an increase in rates of this magnitude must be justified with very specific and publicly available strategies that meet the community's approvals," Mr Steketee said.
The group wants a "fuller explanation" on the council website before it applies to the Independent Pricing and Regulatory Tribunal for the rate rise.
"We also are asking for the release of the 2022-23 financial accounts and the consultant's report that that the council commissioned from the firm Morrison Low and on which it has relied to propose the increase."
The Morrison Low report is available on the council website.
Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content:
- Bookmark our website
- Follow us on Twitter
- Follow us on Google News
- Make sure you are signed up for our breaking news and regular newsletters