STUDIES
Indigo Community Voice Inc. (ICV) is undertaking a series of studies focusing on elevating standards of accountability, transparency, integrity and participation within Victorian Councils and specifically Indigo Shire Council. These investigations are part of a sustained initiative aimed at spotlighting significant issues and ensuring they are brought to the attention of the community. Each completed report will provide in-depth analysis and findings, serving as a valuable resource for both the media and the public. Stay informed with ICV’s efforts to foster a more transparent, accountable, and participatory Indigo Shire Council and government.
Â
GENERAL RATES – Transparency
In December 2023, Minister for Local Government Victoria, Hon Melissa Horne, unveiled the “Local Service Rates and Charges” guideline, set to take effect from 1st March 2024. This guideline comes almost 6 years after the Ombudsman’s investigation into Wodonga Council’s waste overcharging of $18 million over 10 years. The departments guideline issued by the minister would be considered as a directive. The general intention is to enhance transparency, consistency and clarity regarding rates, levies and charges. As an example, some councils use levies and charges to by pass the rate cap, why? Because Councils can charge for some services at a costs well above the rate cap, diluting the effectiveness of the cap and taking a little more from ratepayers. Indigo Shire Council have been using Charge schemes or Levies, other than General rates to give the appearance that Indigo Shire Council general rates are lower. Just like the Ombudsman noted previously in 2018 – Wodonga City Council waste overcharging, this cost shifting by councils undermines transparency and public trust in Local Government.
A Better Rating Strategy – Councils Face Pressure for Rate System Overhaul:
A comprehensive study has highlighted significant flaws in the Victorian government rate calculation method. The current rate system adopted by Councils has produced rate spikes of up to 20% due to underlying property market forces. Families, Businesses, Farmers and ratepayers need a fairer rate system. A proposed new rates system that would eliminate rate spikes has been produced by a proactive Indigo Council ratepayer. Repeatedly there has been no positive response from Indigo Council management to change the status quo. This innovative dynamic new rating system is a fairer system for all, especially in these difficult economic times.
FINANCIAL SUSTAINABILITY –Â ESC most recent report highlights Indigo Shire’s financial risks:
The Victorian Government Essential Services Commission (ESC) looks at the long term sustainability of Councils. The most recent ESC report has flagged concerns over Indigo Shire Council’s financial sustainability, citing a heavy dependence on grants. The current approach by Council will see ratepayer funds diverted from crucial infrastructure to non-essential assets. This threatens to escalate ratepayer burdens through increased operational and maintenance costs. With an alarming average adjusted underlying result of -18.7% over four years as identified by the ESC, Indigo council faces a stark warning: without a boost in ongoing revenue or additional grants, it may struggle to cover the costs of current services. Council’s past financial decisions have created this situation.
TOURISM – Local Concerns Over Tourism North East’s Transparency and Effectiveness:
Residents and ratepayers of North East Victoria are raising alarms over Tourism North East (TNE) opaque operations and questionable economic benefits and lack of accountability of its many projects. Despite significant government and community investment, TNE, a not-for-profit association endorsed by the Victorian Government, denies access to its financials and other information including grant applications and marketing strategies. A comprehensive review of its operations and strategic direction is called for. Some other Victorian Councils are breaking away from these tightly controlled State government boards.
ENVIRONMENTAL and FINANCIAL IMPACT – Rutherglen Loops (Previously known as the Rutherglen Wine, Walk, Cycle Trail)
Concerns continue to be raised over the Rutherglen Loops project as an environmental threat and financial burden on ratepayers and the lack of accountability of Council. A critical analysis of the Rutherglen Loops business case prepared for Indigo Council revealed significant flaws, questioning the projected 3:1 return on investment and the trail alignment. The business case overstated financial benefits which included dubious ‘shadow’ and health benefits, that contradicts the Victorian Auditor General’s office which recommends using only direct tangible primary benefits. The $5.13 million Federal grant poses an ongoing debt liability for ratepayers, raising concerns about its allocation without merit—a stance previously criticised by Minister Catherine King and the Australian National Audit Office. Environmental concerns further complicate the project, with studies indicating the presence of threatened species and flooding of the proposed Lake Moodemere trail section. This combination of economic and ecological issues highlights a lack of accountability in council decision-making, prompting calls for accountability of both the Council and Federal government.