The Mornington Peninsula Shire’s Deputy Mayor has pleaded with residents to understand the reasons behind Council’s unanimous decision to raise rates by the maximum 3 per cent, describing it as a necessary but difficult shift to avoid financial collapse.

Speaking on the vote, Deputy Mayor Cr Paul Pingiaro acknowledged the backlash, particularly from residents who supported councillors based on promises to freeze rates. He admitted he had stood on that very platform but said the financial outlook had changed dramatically.

“I know many residents will feel let down — and I don’t blame them,”

Cr Pingiaro said.

“But the reality we face now is not the one we hoped for during the election. This is not a decision any of us took lightly.”

Cr Pingiaro pointed to worsening trading conditions and what he described as State Government cost-shifting, including the withdrawal of funding for Community Support Centres and the Macrae landslide recovery.

“That landslide alone is costing $8 million, which is roughly $75 for every household on the Peninsula,”

He said.

“The rate increase will only recover about $50 of that per household. It’s not even close to covering the shortfall.”

“Tough internal and external decisions must be made, or we face a real prospect of being insolvent within two years,”

He warned.

Pingiaro stressed that Council was not simply passing on costs to residents without scrutiny.

“We are digging into our own operations, initiating service reviews, and demanding evidence-based spending. This budget will not look like previous years. There is no can left to kick down the road. We’ve barely got a cap. The buck stops with us.”

But despite Council’s explanations, the backlash has been swift and fierce.

“Bloody liars, all of them. They must resign immediately!” said local resident Tony in a public post reacting to the decision.

Ray, another resident, drew comparisons with the federal government: “So therefore all four of them are liars… seems they’ve been listening to Albo making all his promises and then reneging and not following through with any of them.”

Allan, referencing the Council’s handling of the now-closed Hastings Community Club, said: “We pay enough rates already. What about the Hastings Community Club? Do the right thing.”

The unanimous vote means the 3 per cent increase will be included in the Shire’s draft 2025–26 budget, expected to be released later this month for public consultation.