1. The Fair Go Rates System:
Issues and implications for neighbourhood houses

2. Background – Fair Go Rates System
Victorian Government initiative with bipartisan support;
Framework setting maximum annual rate increases linked to CPI (unless otherwise approved) for Victoria’s 79 Councils;
The Minister set the cap at 2.5% (CPI) for ;
Fair Go Rates is one part of the local government reform agenda (plus a review of the Local Government Act and an overhaul of council governance standards);
Administered by the Essential Services Commission (ESC); and
Councils can apply for a higher cap by 31 March 2016.
22 March 2016
Fiona Reidy Consulting

3. Rate capping challenges:
Population growth and demand;
Community expectations for local services and good infrastructure;
Limited levers to balance the books (caps on borrowings, caps on developer contributions, some fees statutory, EBAs set wages growth);
Increased user pays and fee increases are not equitable and impact on vulnerable community members;
Productivity increases can see capacity and service offering shrink;
Deferral/cancellation of capital works will eventually result in widening gaps to the point of unsatisfactory repair or irreversible damage to assets; and
Service and infrastructure impact on place, place making and partnering.
22 March 2016
Fiona Reidy Consulting

4. Implications for Neighbourhood Houses:
There will be implications over time for Neighbourhood Houses if the answers to any of the following questions are yes:
Do you receive any purpose specific or community grants from your local Council?
Do you liaise with an officer on broader issues or regarding local services;
Do you partner with Council on any programs, initiatives or advocacy;
Are you in a Council building or is your venue cross subsidised by Council?
Are you currently charged any fees by your local government?
Do you have vulnerable community members attending your house?
Do these community members use other Council services or Council infrastructure?
22 March 2016
Fiona Reidy Consulting

5. Action for Neighbourhood Houses:
Active relationship management:
What is your Council’s position on rate capping?
Are they applying for a cap increase in ?
What strategies are they adopting to meet the cap (fees and charges increases, service and infrastructure cuts or deferrals, organisational change and productivity, increased borrowings …)?
What is their view of the resources currently allocated to Neighbourhood Houses and have they considered whether this might change – if so in what way?
22 March 2016
Fiona Reidy Consulting

6. Action for Neighbourhood Houses:
Active communications:
Do you have a contact at your Council and a regular catch up arrangement?
How do you communicate key data regarding the scope and reach of local community participation in your house?
Are all if your reports up to date in terms of any previous grants of FASAs?
Have you previously campaigned to attract local government support for your activities or building issues – is there a platform for increased information flow?
Are your other community organisation partners locally aware of the Fair Go Rates System and implications for budget and community impacts over time?
Could you partner with others locally to strengthen the voice of the community?
22 March 2016
Fiona Reidy Consulting

7. Action for Neighbourhood Houses:
Active governance and strategic planning:
Is the Committee of Management (and Network) aware of the Fair Go Rates System and implications for budget and community impacts over time?
Are house participants aware of the Fair Go Rates System and implications for budget and community impacts over time?
If any Council run services or infrastructure was adversely effected, what would the community response be?
Should the House and Network form a view of rate capping and participate in any community consultation on this topic?
Have you considered sustainability issues should rate capping impact on local arrangements and budgets?
22 March 2016
Fiona Reidy Consulting

8. Fiona Reidy Consulting
More information:
Essential Services Commission website:
Municipal Association of Victoria website:
Victorian Local Governance Association website:
22 March 2016
Fiona Reidy Consulting