CASEY ratepayers may be hit with a massive rate hike of up to 15per cent to help the council pull itself out of a financial hole caused by the Brookland Greens methane gas debacle.
The Journal understands councillors were shocked when informed of the potential rate rise in the June 2010-11 budget and that capital works projects could be delayed or prevented. Some councillors are reportedly concerned about how residents would react to, and afford, a large rise, particularly as home interest rates are on the rise.
A senior officer at a confidential briefing with councillors reportedly said a 10per cent increase was on the cards, but that figure might spiral to 15per cent if the State Government refused requests to help fund the $77million cost of remediating the former Stevensons Road landfill.
In even worse news for ratepayers, a 15per cent rise would not include compensation for Brookland Greens residents if they succeed in their class action against the council for damages relating to methane gas migrating from the former rubbish tip to the housing estate. State Ombudsman George Brouwer's report in October strongly criticised the role played by the council and the state's environmental watchdog, the Environment Protection Authority, in the chain of events leading up to the methane gas leak.
Casey has insisted it relied on the opinion of experts and will strongly contest the legal action.
Figures circulated at last Tuesday's council meeting showed Casey's 2009-10 budget was expected to soon slip into a deficit of $54,774.
The deficit becomes $15.513million, when the above-budget costs for the 'Stevensons Road Closed Landfill escalation' are included.
A source close to the council said councillors were not guilty of mismanagement.
"The problem is almost all due to the landfill issue. The global financial crisis has also reduced interest available to the council on its investments," the source said.
The Journal sought comment from all councillors about whether they were concerned about the possibility and impact of a big rate rise.
Cr Kevin Bradford stated: "I am extremely concerned as to the current financial situation and the possible future financial ramifications that we as a council and our residents will be faced with in the not-too distant future."
Mayor Lorraine Wreford said the cities of Casey and Frankston's 320,000 residents and ratepayers should not have to bear a financial burden through "unnecessary rate rises and the potential loss of services and infrastructure caused by a situation that a range of parties have contributed to, many of which are State Government authorities and entities".
"The State Government can't keep ducking and weaving. They're going to have to face the issue at some stage." she said.
Cr Shar Balmes imagined residents would react exactly the same way she would to a rate rise.
"I don't want to see a rise and as a councillor I will do all I can to ensure that won't happen."
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