23-05-2025
Hepburn Shire Council sparks community outrage with one-year 10 per cent rates rise
Residents of Hepburn Shire, home to the tourist town of Daylesford in Victoria, are furious the cash-strapped council is pushing through a one-year 10 per cent rates increase.
Earlier this month the Essential Services Commission approved the extra 7 per cent on top of the 3 per cent cap set by the state government.
"We've had to find some more money and that's what we're attempting — to do it as a once off, said Hepburn Shire Council Mayor Don Henderson.
Faced an annual $4 million cash shortfall, Hepburn Shire Council said the rates increase would generate an additional $1.36 million in revenue to be invested directly into necessary services and infrastructure.
The council had been plagued by financial woes in the past decade.
It lost $5.65 million in a failed Rex project which began in 2016 and was meant to transform a Daylesford art deco building into a multi-use centre for residents and the council.
Cr Henderson said the failed project was only partly to blame for the rates increase.
"We have a lot of heritage buildings and we have to maintain those," he said.
He said the clean up following "fairly devastating" storms in Trentham and Creswick in 2021 and 2022 also cost the council $3.5 million.
The council's draft budget for 2025-'26, including the double digits rates increase, is open for public feedback until June 5.
According to the council the increase would see ratepayers pay on average an extra $2.20 per property per week.
Blampied resident Cameron McPherson was among the ratepayers furious about the increase.
"When you put this in combination with this new fire services levy it is going to affect my wife and I to the tune of $2,000 to $3,000 extra a year," he said.
Mr McPherson said he wanted to see some "accountability".
"If you're going to put up rates by 10 ten per cent in this cost of living crisis then you need to justify it and they aren't justifying it," he said.
Deborah Clarke and her wife Lousie McLachlan live in the Hepburn Shire and have a business in Daylesford.
They expect to pay an extra $300 to $400 a year on top of "a cost of living crisis".
Ms Clarke and Ms McLachlan said a lack of community consultation was driving community anger.
"We've been screaming for an indoor pool for 25 years."
Cr Henderson said the rate rise had to be justified to the Essential Services Commission.
"We had to show the commission we've tried other methods of raising money — be that by asset sales, or loans and cutting our costs in some areas," Cr Henderson said.
"It's regrettable but necessary. We're trying to [cause] as little impact as we can but we still do have to find the money."
Despite the rent increase Cr Henderson said Hepburn had the 60th lowest rates out of 79 councils in the state, and the rates increase would only be for this year.
The ABC contacted the Muncipal Association of Victoria but it declined to comment, saying it was up to councils to set rates as they see fit.
