Cr Summer is calling on ratepayers to make submissions for an overhaul of the municipal charge — a proposed flat fee of $195 that ratepayers must pay regardless of their financial position.
According to the council's 2017-2021 Rating Strategy, a municipal charge does not raise additional revenue but distributes the rates in a way the council considers to be "fairer and more equitable".
Cr Summer said although it was not the intention of the charge, higher rated properties paid less rates as a proportion of what council needed to collect because $6 million had already been collected by the charge.
“For instance, instead of paying a percentage of $76 million, they pay a percentage of $70 million,” she said.
“Hypothetically, the top end of town could be paying up to $40 000 less per property due to the charge that has been paid by everyone.
“It’s really robbing from the poor to pay the rich, as far as I’m concerned.
“We’re supposed to value equity as councillors and I struggle to see how we can apply that with a straight face.
“Some councillors gaslight me on the issue because they don’t want to follow the argument.”
Local governments in Victoria are not required by law to enforce a municipal charge, with 49 per cent choosing not to, according to a 2017 council document.
Cr Summer said abolishing the charge would free up millions of dollars for people to spend in the community in a time of need during COVID-19.
Former mayor Cr Chris Hazelman said Cr Summer raised the same issue every year, and could not recollect there ever being submissions from the public raising concerns over the municipal charge.
“I think once the public has had their opportunity to respond to the draft budget, that’s the point for a debate,” he said.
“Until you did a detailed analysis, it’s absolute nonsense.
“It demonstrates a basic misunderstanding of how the budget works.”
Cr Hazelman refused to detail what the misunderstanding was, but said Cr Summer's argument fell over by confusing the value of the property with the perceived status of the person who owned the property.
“You would find a number of rentals owned by people who are very affluent, the people she’s (Cr Summer) referring to as low income,” he said.
In response, Cr Summer said "one or two" exceptions did not negate the situation for the majority of people in the region.
Based on 2017 budget figures, Cr Summer said the median house price of $233 000 was half the value of the properties that got the benefit of the municipal charge.
“If your property is worth $432 000 or higher, then the rate starts to be relaxed for residential property owners based on this year's projections,” she said.
“It gives a discount back to higher rated properties; it’s a neoliberal way of thinking about paying fees.
“With a bit of education we can get enough submissions in for council to change it, because it’s inherently unfair.”
Council chief executive Peter Harriott said the municipal charge came under the council’s 2017-2021 Rating Strategy written in accordance with the Local Government Act (1989) and ministerial guidelines.
“The 2017-2021 Rating Strategy is only required to be reviewed following the 2020 local government elections,” he said.
Submissions must be made by 5 pm on May 29 and can be made via email at council@shepparton.vic.gov.au
