The Local Paper - Wednesday, June 8, 2016 - Page 00
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Local Interview
Rate rises, CEO’s pay: in Mayor’s own words ■ Cr Margaret Rae, Mayor of the Murrindindi Shire Council, spoke with Rafael Epstein, ABC 774 Drive host on Thursday (June 2). Rafael Epstein: 24 minutes past 4 on 774. Now, this morning, we heard about some real concern in the Murrindindi Shire, places like Kinglake, Kangaroo Ground beyond. The former mayor of Murrindindi, Lyn Gunter, had a chat to Jon Faine. They're very concerned. They say a 6 per cent rate increase was what they were told when, in fact, they were given a 9.9 per cent increase. They're also complaining that the head of the council, the CEO, was given a 10 per cent wage increase. This is what Lyn Gunter said to Jon Faine this morning: Lyn Gunter: Then, they gave the CEO - they reappointed her and gave her a 10 per cent rate rise. Jon Faine: A 10 per cent what increase? Lyn Gunter: A 10 per cent salary increase. Jon Faine: Sorry? The CEO got a 10 per cent pay rise? Lyn Gunter: Yes, she did. Rafael Epstein: Margaret Rae is the current mayor. That was Lyn Gunter, the former mayor. Margaret Rae is the current mayor of Murrindindi Shire council. Thanks for having a word to us. Margaret Rae: Oh, thank you, Rafael. Rafael Epstein: Is that right about the CEO getting a 10 per cent rise? Margaret Rae: If you look at it as a one-off moment in time position, yes, it is true. But, you have to look at the whole remuneration package in the context of the package and to see how that plans out over time. Certainly, the CEOs -Rafael Epstein: Sorry. What do you mean by that? Margaret Rae: Well, the CEO's remuneration over a period of time has not been 10 per cent per annum. If you work it out over a period of years, it works out to a much lower percentage. And her total remuneration package still remains well below her median and the average when compared and benchmarked against other small rural shires. Rafael Epstein: But, she's recently been told ‘you'll get 10 per centover a number of years’. Is that right? Margaret Rae: That's the contractual arrangement for this new contract, yes. Rafael Epstein: I suppose that's one concern. More significantly, perhaps, and there's a bit of campaign that Sophie Mirabella is jumping on board, but I didn't realise that all of your council area is within that seat of the end day that Cathy McGowan now holds Federally. But, maybe, the bigger concern is this: residents were told they'd get a 6 per cent rate increase. It was actually a 9.9 per centincrease. Margaret Rae: Oh well, that just demonstrates a misunderstanding of the figures. The increased applied last year and for previous years and Council held to it pledge in that, not to raise rates above 6 per cent, and the rate increased to the general rate was applied at 6 per cent.
● Cr Margaret Rae, Mayor, Murrindindi Shire Council Photo: The Weekly Times everyone 6 per cent extra on their rates," but then you make almost an Rafael Epstein: Why is extra of 10 per cent. Yea a flashpoint? That means there's a whole lots Margaret Rae: That, of valuations. There's a whole lot of small fine print detail that allows you I can't answer you to get more than 6 per cent. at the moment. Margaret Rae: No, because that's into the long-term Strategic If you look at the figures for the built Plans. You have to build in a gross end of the year, yes, there was a 9.9 factor so the budget is developed on per cent increase in the total rev- the proposition and projection that our enue collected. will grow and need to grow, and That total revenue includes the rates they don't keep growing, the imnormal rate base with the rate in- if on the existing rate pairs becrease, but it also includes all of the pact comes worse and not better. supplementary rates that come in Rafael Epstein: It does sound like during the year and other differences you're valuations to get a bigthat it caused an extra amount to be ger rateusing increase than you promised. collected. Margaret Rae: No, no. Councils So, to look at the figure of the tonot benefit from the valuation or tal rate revenue collected is a totally do revaluation process. separate figure from the rate inonly grow their rate base crease that was applied to the gen- by Councils virtue of adding to the rate base eral rate at the beginning. that if you get new properties beRafael Epstein: I don't really un- so built, new development coming derstand that. Maybe you can ex- ing online, new population moving in, plain. Are you saying that there is a and building in the municipality, 9.9 per cent increase in rate revenue whether it's a metropolitan or is there revenue that comes from pality, or a small rural one. municiother things like parking fines? is what grows the rate base, Margaret Rae: No, no, no, we andThat that's helps to keep the rate don't have that sort of thing. No, it cost downwhat to all ratepayers. will be from general rate revenue, Because, the more propbut if you think about the fact that, erties you have in anyrateable municipality, for instance, we are going through - the more it spreads the cost across - and all councils go through devel- people, the more it mitigates the cost. opment throughout the year. Rafael Epstein: So, what are you As those developments come going to do? The shopkeepers in Yea online, they then start to contribute are all going to close their doors early to the rate base. on Friday at 4 o'clock. What are you They weren't there at the begin- going to do to -- I mean, they're ning of the year, but you might have clearly unhappy. They clearly don't a range of additional properties of agree with what you're telling me. varying values, which come online Margaret Rae: Well, what I think during the year and starts contribute what we're talking about is a demorates. cratic principle here. I think that it That means that rate pool at the doesn't matter which community you end of the year is simply demonstrat- look at, and we have a very diverse ing the gross in the rate base. It does community over a very wide area of not -4000 square kilometres that people Rafael: But, isn't there a problem will have different views about how if you say, "We're going to charge things has happened and why things
● Rafael Epstein, ABC 774 Drive host Photo: ABC has happened. ably, and the whole group here will Rafael Epstein: Why is Yea a be talking to each other. flashpoint? I have talked to many people in Margaret Rae: That, I can't an- the Shire as well, and there are very swer you at the moment. many people who understand the Rafael Epstein: Well, there must position of the shire and what we be some issue. were going through and what is evenMargaret Rae: I don't know why tuating. that's in particular. It may be because In fact, at the moment, if people there are things that always initiate refer to the decision that was brought from a particular point. It doesn't down this week by the Essential Sermean to say it's replicated every- vices Commission about our rate. where, or it may be. Our rate increase for the coming The point I'm trying to make is year will be 4.3 per cent, and that that we're the democratic principle. contains a significant component to People have the right to express go towards our asset renewal fund their point of view in a peaceful man- or asset renewal reserve. ner. But, what I would also add to And our position on our financial that is that we're only a short distance constraints has been completely valiaway from council elections, and dated by the ESC in terms of our when people have that passion for financial responsibility in the way we their community, to have a commit- are managing our assets, and I think ment to their community, and they the community should take confiwant to put back into the community, dence from that decision to know that then I would really encourage them their affairs are being managed well to put their hand out and be councils and managed responsibly, and to and nominate for council election. have an independent arbiter look at I mean no criticism to anybody our figures, look at what we've done, when I say, it is always easier to shout and come down and make a written from the sidelines, but I would love determination that we are managing to see -responsibly into the future, and it is Rafael Epstein: Do you think unfair to expect us to manage in that Sophie Mirabellais shouting from way without that sort of support is, I the sidelines? think, a strong validation of the apMargaret Rae: No, I'm not being proach we've taken. critical. All I'm saying is -We have been determined to try Rafael Epstein : You could be and manage with that undue impost critical. on people, and it's really hard when Margaret Rae: -- if people come rate increases happen. on the inside and learn and commit No one is more conscious than and dedicate themselves to what we are, but we do have real finanmanaging a Shire for the whole com- cial constraints in the Shire, and I munity is about -would encourage all members of our Rafael Epstein: You're welcome community to engage with us and to make sharp criticism, but you are talk about those issues and find solutalking about -- and the woman we tions going forward. heard from this morning, Lyn Gunter. Rafael Epstein: We will show I mean, she was a mayor, so she's how it all turns out at the elections. done what you've done. Thank you for time. So, she knows what the inside of Margaret Rae: Thank you. council looks like. Rafael Epstein: Margaret Rae is Margaret Rae: I understand that. the Mayor of Murrindindi Shire But, she will be talking to, presum- Council.