Warrnambool city councillors vote to seek rate rise above state government cap

Councillors voted 5-2 at Monday's packed special meeting to seek the rise from the Essential Services Commission.

Residents in the public gallery were angered by the decision. It comes after a community survey showed less than six per cent of respondents supported a rate rise. 

Crs Sue Cassidy, Robert Anderson, Mike Neoh, Kylie Gaston and David Owen supported the motion to apply for a total 4.5 per cent increase over the next three years.

Mayor Tony Herbert and Cr Peter Hulin voted against. 

Cr Cassidy said she felt the current council had to "come in and clean up the financial problems that we have inherited". 

"We have had to make hard decisions," she said.

"We have a new CEO now that is trying to turn the ship but it will take time. We don't have time. We need infrastructure fixed now. We want our city to grow and look attractive to the rest of the world. With growth comes more money to the city and the region and it creates jobs." 

Cr Anderson said services which supported vulnerable members of the community should not be cut.

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Cr Gaston said the council must "constantly and consistently look for efficiencies".

"The best business practices must always be pursued," she said.

"We are a tier of government and fill services that are not met by private enterprise. We are not sustainable as a council in our level of asset renewal now or in the foreseeable future. We cannot responsibly continue to kick the can down the road for future councils and generations. Doing this will free up future funds for our aspirational community."

Cr Owen said he had "flip-flopped" making his decision.

"It's a hard decision in one way and easy in others," he said.

"Last year we didn't apply for it. We saw the pressure on Liebig Street traders and other people trying to get by, but all we have done is delay the pain. Our assets are falling to bits. We have inherited a difficult time to be in council. We are asking for roughly $1 extra per week." 

Cr Mike Neoh amended the motion to include that if the council did receive ESC approval funds would be recorded transparently for the public to see the money went to asset renewal.

"Council's role is difficult in balancing services and infrastructure," he said.

"When we did the 2040 plan we asked people what they wanted. We should have asked how we would pay for it as there was a lot of aspiration in that plan. Former, current and future councils have an asset renewal issue. It's easy to say cut services but we have services that are mandatory such as emergency management, pound and building services."

Cr Hulin said his comments in no way had any reflection on the new chief executive as he had "only just arrived and he has inherited what has been going on for the last 10 years.

"We went out to the people and asked them do they want a rate increase or services cut," he said.

"Quite clearly it came back to us that they didn't. I agree we don't need a rate increase. The problem is what we have been doing over the past 10 years - basically sitting on our hands and waiting for the nightmare to come here. We haven't addressed things like Flagstaff Hill or Fun4Kids festival. They could have been turned around years ago. I say how do other councils manage?" 

Cr Tony Herbert called for a full organisational review of the council.

He said he could not support an increase when a review had not been conducted in 14 years.

"I find it a huge responsibility spending other people's money," he said.

"Council performs many great services but the organisation has reached a point where it is unsustainable. I feel like we should be imposing on ourselves the same principles the private sector and ordinary households do in the same situation. Our community does not expect that they fix our internal organisational issues. They expect us to show leadership and fix these issues ourselves."

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