Bendigo's council could hike its rate bills to their highest level in years despite sending more debt collectors to chase late fees.
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It has reported a "significant" rise in people missing or delaying rate payments in the first quarter of 2024, compared to the same time in 2023.
That included a 33 per cent jump in the number of final notices the council sent out and an 88 per cent leap in tasks sent to an external debt collector, the City of Greater Bendigo has revealed.
"This increase in hardship arrangements reflects the increased cost of living pressures being experienced," council officers said.
Rates shortfall intensifying
That strain has not stopped the council calling for a 2.75 per cent rate rise next financial year in newly published budget papers, which could be locked in at a meeting on Monday, May 27.
It will be the largest rate rise since at least 2016, when the state government reined in big hikes with an annual cap.
Council officers defended the proposed rates bill rise, which would net $124.8 million, or two thirds of all the council's income.
While they understood the pressures many households and businesses are under "the community relies on the many services we provide and subsidise", they said.
That includes parks, recreation facilities, waste collection, street cleaning, roads and other responsibilities, council officers said.
They said they had made difficult decisions about what to fund.
Council officers were increasingly concerned that government-imposed rate caps have failed to keep up with inflation and skyrocketing construction costs.
That had left a $49 million "compounding" funding gap over five years council officers said.
Big projects in draft budget
Adding to their budget woes was the fallout from recent flood events. The council is bracing to spend $15 million over the next two years repairing damage to public assets.
Council officers have earmarked $59.3 million for new building and design projects including the North Bendigo Recreation Reserve, Bendigo Bowls Club, Golden Square Recreation Reserve and Huntly's Strauch Reserve.
There would also be money for road renewals, the Bendigo Creek, a Garden Gully play space and footpaths, among other projects.
"As the final Budget of the 2020-2024 Council term, the Budget reflects the legacy Councillors want to leave, and invests responsibly in advance of the next Council term," council officers said.
They had financial hardship guidelines and encouraged anyone experiencing difficulties to visit the council's website or call 1300 002 642.
Tom O'Callaghan
I grew up in Bendigo and I want to tell your stories.
I grew up in Bendigo and I want to tell your stories.
