Wodonga Council would lose 100 jobs and $23.9 million due to rate capping, according to report

The forecasts feature in a Wodonga Council report which has been authored by director of business services Trevor Ierino.

The report, to be presented to Monday night's council meeting, examines annual rate capping from 2016-17 to 2023-24.

It finds if the 2016-17 rate rise was limited to inflation (3.05 per cent) as opposed to the council's proposed level (4.25 per cent) there would be eight jobs lost and a $500,000 shortfall.

"All things being equal, the revenue shortfall under rate capping amounts to some $8.9 million over the next five years and up to $23.9 million by the year 2023-2024,” the report states.

It predicts job cuts needed to make up the shortfall would reach 40 by 2019-20, 68 in 2021-22 and 100 in 2023-24.

The report has been compiled to help Wodonga Council position itself ahead of the introduction of rate capping by the Victorian Government from 2016-17.

The council is planning a submission to the Essential Services Commission which is deciding how capping will be regulated and the application of variations to CPI rises.

Mr Ierino highlighted concerns over who pays for the cost of a rates variation application, the tight introductory timetable of capping and legislative requirements.

He believes the Victorian Government should bear the cost of a rates variation submission and the timetable is "unachievable" without using old data.

Mr Ierino expects if Wodonga Council applies for a rate cap variation for 2016-17 it will probably have to be made by the end of the year.

Ten issues were cited by Mr Ierino as factors which may see an application for a rate rise beyond inflation.

They included the cost of ageing infrastructure, superannuation call-ups and greater compliance costs through regulations such as the Food Act and Domestic Animals Act.

Federal and state government cost-shifting was also highlighted along with inadequate indexation of grants to the city.