CASEY Council will cap its next rate rise to the consumer price index plus 1.5 per cent - a move that is sure to prove popular with ratepayers but which could delay projects.
Councillors decided on Tuesday night to adopt the novel approach.
Cr Michael Farley had originally proposed for rate increases to be capped at CPI after receiving letters from residents appealing for the council to "show compassion".
However, linking rises to CPI plus 1.5 per cent was a more "realistic" index.
"Council staff have just been given wage increases of 4.5 per cent every year for three years as part of their EBA negotiations, our buildings costs go up above CPI, and we have so many capital works projects on the books," Cr Farley said.
A cap on rate increases would mean a downgrade of the capital works program. "If you want to lower rates, it will mean less capital expenditure. Residents will have to wait longer for sporting and community facilities."
Cranbourne Information and Support Service manager Leanne Petrides said many clients had sought help for rates arrears. "We find that people tend to default on their rates for their mortgage. Many people don't even open their rates bill. They just put them into the drawer because they know they can't pay for it."
Email a friend