“CARDINIA council is assigned a one-star financial sustainability rating on account of both its unsustainable operating deficit and its very high debt levels.

“Its operating deficit is a huge 23 percent of revenues from rates and charges. Its total debt is 103 percent of operating revenues.

“Its relatively strong underlying growth in spending on services reduces the capacity the council has to address these financial imbalances without also putting strong pressure on future rates and charges. Recent hikes in rates and charges are further evidence of the financial imbalances that exist.

“For these reasons, our assessment is that the council’s existing financial policies are not sustainable, with disruptive increases in rates and charges and/or cutbacks in services likely going forward as the imbalances evident in its financial performance and position are tackled.

“Perhaps the only saving grace is the absence of any apparent infrastructure backlog problem.”