Victoria’s lowest rates

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Every Council candidate and councillor talks about ‘low rates’ or reducing rates but few ever have any impact (or even genuine intention) on achieving either.

Since my election to Council in 2000, I have been keenly focused on keeping rates as low as possible by running a tight, lean and efficient Council budget.  This has been a principal I have applied every week and to every decision I have made as a Monash councillor.

The annual rates bill is one of the largest single outlays which a person has to pay each year.

I believe that as well as providing quality services, there is nothing more important that a council must do than keep the rates as low as possible to help ease the forever increasing cost of living pressures facing ratepayers.

Providing that local infrastructure is being maintained at an appropriate standard and services are being provided effectively, it is much better for money to be left in your pocket rather than collected by Council through increased rates.

Rates may not have reduced during my time as a councillor, but I am absolutely confident that had I not been there, Monash rates would be significantly higher today and they would not be the lowest in the state.

Monash rates are lower than all other 78 councils in Victoria

Monash rates are lower than all other 78 councils in Victoria

Having the lowest rates in Victoria is no accident and is not easy to maintain.  It requires a constant focus on restraint, scrutiny of new spending and regular reviews of existing operations.

I have a clear record of consistently working to keep costs down, prioritise spending to the most effective areas and improving value for money.

Below is a list of initiatives I have personally led over the course of the 2012-16 Council term to reduce the impact of rates:

  1. Elimination of Monash Council’s $15 million of debt which had accumulated since Monash Council’s formation in the mid 1990s following the Kennett Government’s amalgamations of local councils.  Monash is now debt free for the first time in its history;
  2. Introduction of a differential rate on commercial and industrial ratepayers to recover more rates from business ratepayers in favour of residential ratepayers;
  3. Introduction of a Council funded pensioner rate rebate of $50.00;
  4. Development of a Financial Hardship Policy to provide assistance to ratepayers in financial hardship with the payment of their rates;
  5. Allowing pensioners to defer their rates interest free and other ratepayers experiencing financial hardship to defer with only a 2.5% interest rate;
  6. Inserted a Key Performance Indicator in the CEO’s contract for her to achieve $500K+ of efficiency and productivity savings on an annual basis;
  7. Reduced the number of effective full time employees at Council over the course of this Council term and capped this number so it no longer automatically grows from year to year;
  8. Withdrew Council from providing a vacation care program as this was being subsidised by ratepayers to the tune of more than $200K per year (and when there were many other similarly priced options available locally for a similar fee);
  9. Rolled out energy efficient street lighting across Monash which will save an estimated $14.1 million in energy costs through to 2031 and cut carbon emissions by 18%;
  10. Exited Council’s operations of two nursing homes which were costing Council more than $1,000,000 to run every year and servicing only 165 residents (and where other care was available locally for similar or lower fees);
  11. Eliminated the ratepayer subsidy for the operation of Council’s Family Day Care program by working with staff, carers and parents to achieve a new fee regime to run the service on a cost neutral basis;
  12. Instigated a state-wide campaign for rate reform urging the state government to give councils the flexibility to smooth fluctuations in rates from year to year due to property revaluations;
  13. Secured in-principle support for Council to introduce a separate waste charge to provide relief to ratepayers who do not receive a waste collection service from Council; and
  14. Set a target of a 40% reduction in Council’s annual $1 million plus spend on legal services.

A reflection on the 2012-16 Council term

Posted by on 4:18 pm in Councillor performance, Effective meetings, Financial management, Improving efficiency, Improving services, News, Record | 0 comments

A reflection on the 2012-16 Council term

The following is my end of term address which I delivered to the last Monash Council meeting of the 2012-16 term on Wednesday, 19 October 2016.   Given this is the last Council meeting for this term of Council, I would like to make a few comments looking back over the past four years. Reflecting on these four years this afternoon, it occurred to me that I don’t think there has ever been a period of such rapid change and new initiatives in the 22 year history of Monash Council. The election of most us in October 2012 now seems much...

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Campaign for rate reform to fix Victoria’s archaic rates system

Posted by on 9:18 pm in Low rates, News, Pensioners, Priorities, Rate reform, Rates, Record, Seniors | 0 comments

Campaign for rate reform to fix Victoria’s archaic rates system

Rate notices in Monash have recently been sent out.  Monash will collect 2.5% more in rates in 2016/17 compared to the previous year 2015/16. However, unfortunately this does not mean a uniform increase of 2.5% every property. The amount of rates paid by each property is determined by the biannual valuation of all properties.  The most recent revaluation was completed on 1 January 2016.  It is the most recent valuation of all properties in the municipality which determines the amount of rates paid by each property. If a property has increased...

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Interest free deferral of rates for pensioners

Posted by on 7:09 am in Low rates, Pensioners, Priorities, Rate reform, Rates, Record | 0 comments

Interest free deferral of rates for pensioners

At the 27 September Council meeting, I recommended to Council that it vary the Council’s Financial Hardship Policy which I instigated in 2015 to: reduce the interest rate charged on deferred rates for pensioners to 0% where a person is over the age of 65 and can prove they have lived in their home for more than 10 years; and reduce the interest rate charged for the deferral of Council rates for all other persons qualifying under our Financial Hardship Policy from 4.75% to 2.5% per annum. This change was supported by most other...

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Fairer rates for people with no Council waste collection

Posted by on 12:13 pm in Core functions, Financial management, Improving services, Low rates, News, Priorities, Rate reform, Rates | 0 comments

Fairer rates for people with no Council waste collection

On 30 August 2016 Council supported my recommendation to resolve in principle to introduce a separate waste and environmental charge as part of the annual rates bill. This is to address the growing unfairness where more than 1,000 residential ratepayers in Monash are currently paying for waste collection services through their general rates which they do not receive. Unlike most other councils, Monash Council does not have a separate waste charge.  A waste charge is levied only on those ratepayers who receive a waste collection service from...

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Keeping rates low: reducing legal costs

Posted by on 8:36 am in Financial management, Improving efficiency, Low rates, Rates | 0 comments

Keeping rates low: reducing legal costs

Monash Council spends more than $1,000,000 each year on legal expenses. Unlike other areas of Council expenditure and procurement, there is no sophistication to Council’s purchasing of legal services and there is no competitive process undertaken. Alternative arrangements that can reduce these costs and still deliver the required high level of professional advice and service in a timely manner are available to Council.  These options should be explored to determine more cost-effective arrangements for the future. I am pleased that Council...

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Fairer rates: A new hardship policy

Posted by on 11:25 am in Pensioners, Rate reform, Rates, Seniors | 0 comments

Fairer rates: A new hardship policy

Prior to 2015 Council had no hardship policy.  A ratepayer, even if in crippling financial hardship, would be charged oppressive penalty interest rates (which is approximately more than double home loan rates offered by the major banks) on any unpaid rates. Recognising that financial hardship can be experienced by many in our community, Council accepted my proposal to the 28 April 2015 meeting that Council develop a hardship policy. The policy is to be developed based on recent work by the MAV and the Public Interest Law Clearing House...

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Fairer rates: using differential rates to provide some relief to homeowners

Posted by on 10:50 am in Financial management, Low rates, Pensioners, Priorities, Rate reform, Rates, Record, Seniors | 0 comments

Fairer rates: using differential rates to provide some relief to homeowners

The last time that Council made any significant changes to its rating system was five years ago when it determined to move from rating on the basis of site value (SV) to rating on the basis of capital improved value (CIV). Since that time, residential ratepayers have paid an increasing share of the overall rates burden in favour of business ratepayers because of property valuation changes. This is not fair. I am pleased that Council supported my recommendations to the April 2015 meeting to re-balance the Monash rating system so that the...

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Fairer rates: a new pensioner rebate

Posted by on 10:31 am in Low rates, News, Pensioners, Rate reform, Rates, Seniors | 0 comments

Fairer rates: a new pensioner rebate

After narrowly failing to convince a majority of councillors in the past, I finally succeeded at the April 2015 Council meeting to get Council to introduce a Council-funded pensioner rate rebate of $50.00. The key rationale for proposing the introduction of a pensioner rate rebate of $50.00 is because the level of rate increases in Monash (like other councils) has risen above the cost of living since the mid-1990s.  Monash Council has 13,501 eligible pensioner ratepayers which is nearly 20% of total residential ratepayers in Monash. Despite...

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A win-win outcome on Family Day Care

Posted by on 11:54 am in Core functions, Early years, Financial management, Improving efficiency, Low rates, Priorities, Rates, Record | 0 comments

A win-win outcome on Family Day Care

Family Day Care (FDC) is a government recognised child care option which provides care to children in a carer’s home.  Council has operated the Monash Family Day Care service since 1995.  The scheme has a strong reputation for its quality service provision, good management and stable utilisation figures.  This is reinforced by its solid accreditation assessment record. However, the FDC environment has significantly changed over recent years with a range of alternate providers now operating in Monash or with an expressed interest and...

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A win-win outcome on aged care

Posted by on 9:32 am in Financial management, Improving efficiency, Rates, Record | 0 comments

A win-win outcome on aged care

At our January meeting, Council decided to sell the Elizabeth Gardens and Monash Gardens aged care facilities and the Monash Gardens retirement village to experienced not-for-profit aged care provider, Royal Freemasons. This is a great outcome for the residents and staff at the facilities. After an exhaustive seven month process, Council decided to sell because Royal Freemasons will be able to provide better care and services into the future compared to what Council currently provides. If we did not have confidence that this was so, we would...

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