Swan Hill Rural City Council has presented a compelling case to the Legislative Council Economy and Infrastructure Committee during a recent public hearing as part of the Inquiry into Local Government Funding and Service Delivery.
Mayor, Cr Stuart King, and Director Corporate Services, Bhan Pratap presented to the committee hearing, following up on council's written submission made in June 2024.
During the hearing, Cr King highlighted several key challenges faced by our municipality which are exacerbated by ongoing cost-shifting from the State Government to Local Government and a net reduction in Federal financial assistance grants and roads funding.
"Cost-shift from the Government is placing an increased financial burden on local ratepayers. This shift forces Council to divert funds from essential infrastructure projects to cover operational expenses for service delivery, leading to a backlog in asset renewal and creating pressure on future budgets.
"The substantial impact of reduced Government funding on critical services needs to be addressed. For instance, State Government funding for libraries, maternal child health and the youth sector has not kept pace with inflation, leading to a shortfall that forces the Council to increase its funding contribution to fulfill community expectations. Where State funding used to be a 50-50 split, Council is now covering up to 70% of the cost of these services.
"Similarly, costs for school crossing supervisors have surged by 267% in the past five years. This was a State Government initiative that was originally nearly fully funded but is now a significant financial burden for the Council," Cr King said.
Cr King and Mr Pratap took the opportunity to highlight the need for greater investment in local and State roads and rail infrastructure to transport more than $1.5 Billon of agricultural production from our municipality. They also added that the majority of the community do not discern between Council and VicRoads roads and Council carries the reputational damage of poorly maintained State managed roads.
Cr King also highlighted that inflexibility in the recent Victorian Local Roads and Streets funding means that the road safety of our community continues to be compromised.
"Council has been allocated $2 million of funding in this program but despite our advocacy the Minister won't allow it to be used to upgrade one of the most dangerous intersections in our municipality because it's a State and local road intersection," he said.
Cr King emphasised the need for enhanced disaster recovery funding following recent severe weather and flooding events.
"We are seeking a funding model that not only restores damaged infrastructure following an event but also improves it under the principle of "building back better. This just makes sense! It's a wise investment so the infrastructure can withstand the next event," he added.
Cr King highlighted the challenges in waste management and the increasing costs associated with implementing new waste systems.
"EPA levies are a significant proportion of waste charges, but we get very little back in return, despite our significant efforts to support circular economy initiatives, including composting and agricultural plastics recovery".
"Not to mention the escalating costs related to insurance, energy, and municipal elections, all of which strain the Council's financial capacity.
"We are also seeking a review of the rate-capping system to account for local government-specific cost factors rather than relying solely on the Consumer Price Index (CPI). We support the introduction of a Local Government cost index to better reflect the unique financial pressures faced by rural councils," he said.
Cr King said Council's submission was a crucial step in advocating for a more sustainable and equitable funding model to ensure that councils can continue to deliver high-quality infrastructure, facilities and services to their communities.
