“State Government has to deliver on their remit of services, as does Council, and not hand ball to you and me through Council rates. We all pay taxes at Federal, State and Local Government levels. State Government needs to take responsibility and stop over-reaching into our Council pockets.” – Former Councillor Christina Sirakoff.

Cost Shifting – An  Emerging Issue

CoPP Mayor Alex Makin recently joined Yarra Mayor Stephen Jolly in arguing for a conversation on possible merging of Council offices, managing council finances, failing service delivery and on-going cost shifting from the Victorian Government to local councils.

The Residents of Port Phillip have yet to define a position on this matter but welcomes Mayor Makins timely intervention raising what are perhaps some of the most important issues facing the long-term viability of our 79 Victorian municipalities.

Former RoPP Councillor Christina Sirakoff nailed the cost shifting issue when she gave the example of two State-responsible roads within the City of Port Phillip – Canterbury Road and Beaconsfield Parade.

“These State roads are maintained by Council because the State Government was not fulfilling their maintenance obligations. Ask Council what they are paid to do this State Government job and if they are ahead or losing (subsidising) the State Government?”

Other issues include aged care, housing and childcare facilities as well as aspects of the NDIS, – a remit of State and Federal government, but not local councils are all part of this discussion.  Similarly State governments will initially fund a programme; the funding then ceases and the pressure then is on local government to meet the shortfall. For example, local councils have increased their funding contributions to libraries as the State Government has reduced funding. This is the reason why Port Phillip Mayor Makin said the biggest issue was desperately needing clarity on which levels of government control what and how they are funded.

 “Whether we amalgamate or we don’t, those fundamental problems still remain.” He goes on to say, “A formal agreement between local and state based on responsibilities and revenue capabilities would prevent this from occurring.”

Cost Shifting Not the Only Issue

In any discussion on council finances, Cr Makin avoided the elephant in the room, namely the internal lack of financial discipline in our City of Port Phillip both at councillor decision levels as well as within the council bureaucracy.

The fundamental issue lies within the internal machinations of our council.

• When will the council executive find the spine to just say no to cost shifting including public pushback?
• When will our subset of Councillors outside the sensible centre and CoPP bureaucrats who pander to State Government and breathe on the mantra of “tax and spend” smell a dose of financial reality?

Councillors and council officers lacking the real-world disciplines of the private sector and believing they have a larger-than-life role to play are also at the centre of the financial pressures facing council. Similarly, some of the more “political” councillors use their position in council to push pet projects commonly known as “pork barrelling” to interest groups and supporters; and as a way of demonstrating that they are ready for a role in State Government. This does not assist in better local government but certainly assists with their virtue signalling capabilities!

For as long as councillors and the council executive engage in appeasement of the State government combined with a council hierarchy dominated by similar bed fellows, it can only be more of the same.

Recently the Residents of Port Phillip prepared a budget submission to the CoPP that made for  very sobering reading, highlighting our council’s exorbitant expenditure compared with neighbouring boroughs. It was also noted in that report that vital rates money that could be re-purposed into core services was bound up in an excessive senior management structure. A structure not fit for purpose-especially in the new era of AI. Source https://ropp.org.au/wp-content/uploads/2026/02/RoPP-2026-27-Council-Plan-and-Budget-Submission.pdf

Need for Council to Return to Their Basic Remit.

If council stayed within their lane and delivered on the basic remit, we would have less council bureaucracy, lower rates, better safety and amenity and a more satisfied ratepayer and resident community. This means elimination of duplication with current State or Federal Programmes including social programmes that mimic what the State government is currently providing. Instead, we have a financially mismanaged State government forcing the ratepayers to wear more of their responsibilities through ever increasing council rates and Council just absorbing it rather than saying NO. This is just a form of taxation through the backdoor. And instead of rising to the challenge and putting the council house in order, we appear to have put up the white flag.

Premier Jacinta Allan, known for heading a State Government but not known for its financial rectitude got it right when she stated in response to Mayors’ Makin and Jolly.

“Councils raise rates from their local residents, and they should be focused on delivering services that they are expected to: roads, rates and rubbish”

YES Mayor Makin, we agree with you that the current cost shifting needs resolution alongside the need for a new government agreement outlining the general delineation on the extent of respective remit between state and local governments. Whether there should be council mergers will require greater analysis but nevertheless this is a valuable discussion that should be held.

We do not however believe is that the discussion should stop there. Council needs to get its own house in order. Just as valid as your raised concerns is the need to review all CoPP expenditure and tackle non-core expenditure; reduce the bloated senior management structure and bring the CoPP into line with neighbouring councils on key metrics. Should eliminating non-core expense from the budget and correspondingly delivering rates relief to the ratepayers of Port Phillip be the immediate priority as we finalise the 2026-27 Budget?

Have your say by emailing Residents of Port Phillip  at mail@ropp.org.au