RATE rises and service cuts seem inevitable for Knox residents after a taskforce aimed at addressing the multimillion-dollar superannuation shortfall failed to find a "silver bullet" solution.
The Municipal Association of Victoria released the superannuation taskforce recommendations last month, but there was no one-size-fits-all solution, MAV president Cr Bill McArthur said.
"While the taskforce has not identified a silver bullet, the priority reform areas aim to ease the financial effects of shortfalls on councils, reduce future liabilities and improve information on fund performance."
The council's corporate development director Mark Dupe sat on the taskforce and said his department would consider all recommendations applicable to Knox.
The Weekly first reported last year that Knox Council would be forced to pay almost $12 million to subsidise a shortfall for a public sector scheme that entitles employees to a defined benefit pension at retirement.
Mr Dupe said councillors had been briefed on the options in preparation for budget discussions beginning next month.
But service cuts, rate rises and fee increases are a genuine possibility to cover the approaching shortfall, Mr Dupe confirmed.
"We're looking at a reduction of operational and capital expenditure. There may be a combination of measures. It will depend on the council's priorities."
He said some of the taskforce recommendations that may apply to Knox included group borrowing with other municipalities to reduce interest costs and the use of cash reserves.
MAV president Cr McArthur warned in the report that the shortfall was a "critical challenge" that would not just affect the immediate budget.
"The taskforce report warns that defined benefit shortfall risks would continue to constrain councils' capacity to deliver infrastructure and services to their communities over the coming 10 to 15 years," Cr McArthur stated.
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