MORNINGTON PENINSULA — 8 April 2025: Mornington Peninsula Shire Council has voted to adopt the maximum allowable 3 per cent rate increase for the 2025–26 financial year, in line with the State Government’s rate cap.
The motion was moved by Cr Paul Pingiaro and seconded by Cr David Gill during Tuesday night’s council meeting. The decision comes just five months after the 2024 local government election, where several councillors — including Cr Pingiaro — campaigned on promises to freeze rates.
Speaking to the motion, Cr Pingiaro acknowledged the community’s likely disappointment and the contrast with his own pre-election stance.
“Many in our community will actually be quite disappointed by our decision here tonight to apply the full 3% this year. I understand those concerns,”
Cr Pingiaro said.
“However, we as Councillors have a clear responsibility to ensure the long-term financial viability of our Shire. We are operating under unprecedented pressures, rising operational costs, growing community expectations and increasing responsibilities being handed down from other levels of government without the funding to match.”
Cr Pingiaro cited a series of financial pressures, including the Macrae landslide—an unbudgeted $8 million event—expected to cost each ratepayer approximately $47, as well as the cost of maintaining three ageing community facilities and covering shortfalls in state-funded support services.
“We’re not elected just to listen, but to lead, and leadership means making hard decisions, even when they’re unpopular. In the upcoming budget, tough internal and external decisions must be made, or we face a real prospect of being insolvent within two years.”
Despite having supported a rates freeze during his election campaign, Cr Pingiaro said the full financial picture revealed since taking office made that course of action untenable.
“Let me be absolutely clear, this is not about blindly passing on costs. This upcoming budget will be a very different budget to previous years. There is no can left to kick down the road,”
He said.
“Unfortunately, Council is not in the position to remain financially viable if rates were frozen.”
The rate rise will be factored into the Council’s upcoming draft budget, expected to be released for public feedback later this month.
