Australia's National Local Government Newspaper Online

VIC infrastructure to gain from new Rating Framework

The Victorian Government has turned the spotlight on rebuilding local infrastructure following the recent release of the 2000/2001 Rating Framework by Local Government Minister Bob Cameron.

The Minister said that the Framework responds to an infrastructure funding gap that was identified in the Victorian Local Government Infrastructure Study 'Facing the Renewal Challenge'. A key recommendation of the report is that Councils need to increase their spending on infrastructure renewal for a sustained period in order to maintain their essential infrastructure assets.

"The Government urges Councils to recognise that their residents and ratepayers will already be faced with property revaluations and the introduction of the GST," Bob Cameron said. "Given the need for Councils to focus on maintaining their existing infrastructure, there is an expectation from the Victorian Government that any increases in Local Government rates be reasonable and affordable."

The Rating Framework recommends that increases be kept to between one and two percent above the underlying rate of inflation that is expected to be 2.5 per cent. "To help Councils progressively deal with the infrastructure renewal challenge, the 2000/2001 Rating Framework is structured to assist them in improving their future funding and assets management capacity," the Minister said.

"The Government was elected with a commitment to lift restraints on the financial independence of Councils and ensure Council rates remain fair and affordable." He said that this Framework delivers on that commitment and builds upon the gains achieved by a renewed partnership between the State and Local Government since the election of the Bracks Government in October last year.

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