Council’s statement on Local Government Sustainability Report

Murrindindi Shire Council welcomes the release of the Legislative Council Economy and Infrastructure Committee’s report following the Parliamentary Inquiry into Local Government Funding and Services in Victoria. The report's findings and recommendations highlight the critical challenges facing rural councils like Murrindindi, particularly around financial sustainability, equitable grant allocation, and addressing cost shifting from other levels of government. 

We are pleased to see that our submission and advocacy have contributed significantly to the Inquiry's recommendations. The recognition of unique challenges, such as maintaining services across dispersed communities, addressing the growing renewal gap for critical infrastructure, and the disproportionate impact of funding models, reflects the lived experience of our residents and Council. Murrindindi has been impacted by successive years of underfunding on a per capita and overall basis as compared to peer Councils, further compounding these challenges. 

The report’s recommendations to review the financial assistance grant distribution model and address cost shifting are especially important for small rural councils. Our ratepayers are already heavy-lifting contributors to Council revenue through above-average rates, so these recommendations acknowledge the pressing need for fairer and more equitable funding to support councils like Murrindindi. These measures can help ensure councils like ours have the resources needed to sustain essential services and plan for future growth, while addressing the inequities in the current funding system. 

As a Council that has consistently raised concerns about the strain of underfunded responsibilities and inequitable grant allocations, we strongly support the Committee’s call for systemic change to ensure rural councils can effectively serve their communities. We look forward to collaborating with all levels of government to deliver these recommendations and create a fairer, more sustainable framework for local government funding. 

With thanks to the Committee, we keenly await the Victorian Government's response to the report and anticipate the full implementation of its recommendations. Their adoption would represent a significant step towards ensuring that councils like Murrindindi can continue to deliver for their communities now and into the future.