Are you being overcharged? This council error cost residents over $10 million!
- Replies 20
As law-abiding citizens, paying our dues and ensuring that our taxes work for us is important.
However, a recent revelation left many residents reeling due to overcharging.
A Freedom of Information (FOI) investigation conducted by Council Watch has uncovered a costly error by the Frankston City Council.
The council in Melbourne's southern suburbs incorrectly charged ratepayers over $10 million in fees, raising serious questions about transparency and accountability in local government operations.
The overcharges were considered 'waste charges’—typically intended to cover the cost of private rubbish collection services.
However, Council Watch President Dean Hurlston accused the municipality of 'gouging' residents by inappropriately including additional services like street sweeping and graffiti management within these levies.
The breakdown of the misallocated funds is startling: nearly $3 million for street cleaning, $425,000 for graffiti management, and $2.1 million for rubbish collection in public places.
These figures, obtained through the FOI's request, highlight a significant discrepancy between what residents believed they were paying for and the actual allocation of their funds.
In response to the findings, Frankston City Council's Chief Executive Phil Cantillon defended the charges and stated that these services are expected.
'Like most Councils, Frankston City utilises a waste management charge, under the Local Government Act 1989, to fund critical services such as waste collection, disposal and recycling, landfill rehabilitation, street cleaning, dumped rubbish and graffiti management,' he stated.
'New guidelines were introduced by the Victorian Government in December, seeking to create consistency across all local government about what is included in these charges. Council supports these changes and will continue to be transparent about what is included in our charges in the future,' he added.
'We have worked through the impact of new guidelines, which will be reflected in the Annual Budget for the financial year 2025/26. It's worth noting that Frankston City Council's waste management charge has decreased each year for the last two years and is expected to decrease again in the 2024-2025 year.'
He also emphasised the council's efforts in waste management.
'Last year alone, Council collected and processed almost 70,000 tonnes of landfill waste, recycling and food & garden waste and removed almost 40,000 square metres of graffiti across the municipality,' he shared.
The FOI investigation also revealed that other councils like Manningham and Stonnington imposed similar fees on residents, including stormwater drain maintenance and public litter removal charges.
With more than half of Victoria's 79 councils engaged in this practice, Local Government Minister Melissa Horne took a firm stance.
'This is clearly outside of the guidelines, and it's clearly outside of the Local Government Act 1989,' Minister Horne shared, giving councils a year to clear out the air.
'We expect the local government to operate transparently and with accountability.'
Local Government Finance Professionals (FinPro) President Bradley Thomas welcomed the extra time to adjust to the new guidelines.
'I know councils are doing lots of work to inform the community, so the community understands what the general rates are going towards,' he said.
'When people have genuine difficulties paying, I suggest they pick up the phone and talk to their local councils.'
This discovery is a wake-up call for residents to scrutinise their council rates and charges closely.
It's crucial to stay informed and proactive about where your hard-earned money is going, especially regarding public services.
If you find anything suspicious about any billing sent to you, contact your local councils for clarifications and immediate action.
Have you noticed any discrepancies in your council rates or waste charges? Share your experiences with us in the comments below.
However, a recent revelation left many residents reeling due to overcharging.
A Freedom of Information (FOI) investigation conducted by Council Watch has uncovered a costly error by the Frankston City Council.
The council in Melbourne's southern suburbs incorrectly charged ratepayers over $10 million in fees, raising serious questions about transparency and accountability in local government operations.
The overcharges were considered 'waste charges’—typically intended to cover the cost of private rubbish collection services.
Rubbish collection fees are often charged to keep local areas clean. Image Credit: Pexels/Markus Spiske
However, Council Watch President Dean Hurlston accused the municipality of 'gouging' residents by inappropriately including additional services like street sweeping and graffiti management within these levies.
The breakdown of the misallocated funds is startling: nearly $3 million for street cleaning, $425,000 for graffiti management, and $2.1 million for rubbish collection in public places.
These figures, obtained through the FOI's request, highlight a significant discrepancy between what residents believed they were paying for and the actual allocation of their funds.
In response to the findings, Frankston City Council's Chief Executive Phil Cantillon defended the charges and stated that these services are expected.
'Like most Councils, Frankston City utilises a waste management charge, under the Local Government Act 1989, to fund critical services such as waste collection, disposal and recycling, landfill rehabilitation, street cleaning, dumped rubbish and graffiti management,' he stated.
'New guidelines were introduced by the Victorian Government in December, seeking to create consistency across all local government about what is included in these charges. Council supports these changes and will continue to be transparent about what is included in our charges in the future,' he added.
'We have worked through the impact of new guidelines, which will be reflected in the Annual Budget for the financial year 2025/26. It's worth noting that Frankston City Council's waste management charge has decreased each year for the last two years and is expected to decrease again in the 2024-2025 year.'
He also emphasised the council's efforts in waste management.
'Last year alone, Council collected and processed almost 70,000 tonnes of landfill waste, recycling and food & garden waste and removed almost 40,000 square metres of graffiti across the municipality,' he shared.
The FOI investigation also revealed that other councils like Manningham and Stonnington imposed similar fees on residents, including stormwater drain maintenance and public litter removal charges.
With more than half of Victoria's 79 councils engaged in this practice, Local Government Minister Melissa Horne took a firm stance.
'This is clearly outside of the guidelines, and it's clearly outside of the Local Government Act 1989,' Minister Horne shared, giving councils a year to clear out the air.
'We expect the local government to operate transparently and with accountability.'
Local Government Finance Professionals (FinPro) President Bradley Thomas welcomed the extra time to adjust to the new guidelines.
'I know councils are doing lots of work to inform the community, so the community understands what the general rates are going towards,' he said.
'When people have genuine difficulties paying, I suggest they pick up the phone and talk to their local councils.'
This discovery is a wake-up call for residents to scrutinise their council rates and charges closely.
It's crucial to stay informed and proactive about where your hard-earned money is going, especially regarding public services.
If you find anything suspicious about any billing sent to you, contact your local councils for clarifications and immediate action.
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