A Wodonga councillor has claimed the overcharging levy dates back to council’s “crippling debts” from the Logic Centre and said council would be seeking permission to raise rates now it could not rely on the waste surplus.
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Cr Tim Quilty said he believed the overcharging was a “deliberate” policy implemented more than 15 years ago, which consecutive councils and staff members had failed repeatedly to address.
“I believe it was deliberately done to raise revenue as they couldn’t get a higher rate,” he said.
“Then it became inconvenient to fix, the more time that went by the harder it was to fix and the more trouble it would have caused, so everyone just hoped it didn’t come out when they were on council, I think.”
Cr Quilty said the long-term levy surplus was not a secret but council also didn’t go out of their way to advertise it.
“Successive councils have refused to fix it,” he said.
“Everyone is complicit to some extent. Even we councillors elected for the first time 18 months ago can't entirely avoid blame.”
Former mayor Rodney Wangman this week declined to comment while Mark Byatt did not respond to requests.
Cr Quilty’s view is at odds with mayor Anna Speedie who has maintained council was “transparent” on the issue, saying council had undertaken “extensive community consultation” for the budgets and rating strategy.
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Chief executive Patience Harrington and Cr Quilty both said council was working with the Essential Services Commission.
Cr Quilty said he suspects council will angle for a rate rise rather than cuts to services.
“If any rates were to rise, could would need to get permission for any rise above the rate cap (of 2 per cent),” he said. “It’s either a rate rise or cuts to services.
“I don’t think either will be popular, but if it would be offset by the cut to the waste levy, so there would be no net change in the money raised.
“Obviously there are difficult times ahead, this is going to keep popping its head up and people are going to keep being unhappy.”
Cr Quilty said he was unclear why anyone would have thought the surplus was okay, even if it wasn’t illegal and that money hadn’t been spent on “crack and hookers”.
“Wodonga Council has done something wrong,” he said. “I've got no time for any prevaricating or ducking and weaving on that point.”