<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>There are calls for </span><a href="https://www.9news.com.au/melbourne" rel="" target="" title="Melbourne's"><span>Melbourne's</span></a><span> inner-city </span><a href="https://www.9news.com.au/council" rel="" target="" title="councils"><span>councils</span></a><span> to merge into a mega municipality as they struggle with growing financial pressures.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Forced to bankroll $10 million in services previously co-funded with the state government, City of Yarra Mayor Stephen Jolly says his community is being pushed to the brink.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"It's a sign of desperation," Jolly said.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/work-from-home-trend-hurting-cbd-pubs-bars-and-restaurants/57f2e84c-0e68-4ecf-a468-cf238a8d19c3" target="_blank"><strong><span>Are Friday night drinks a distant memory? How work-from-home and the four-day work week is hitting CBD cafes and pubs</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We're being riddled like Swiss cheese with these increases in cost."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Jolly is suggesting the cities of Melbourne, Yarra and Port Phillip merge into one mega council to cover inner Melbourne.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Not as a way of slashing and burning, but of expanding the services," Jolly said.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/calls-for-melbourne-inner-city-council-merger/9d2dea06-4cd3-4e12-b5bf-6666a67cf557" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>But Premier Jacinta Allan says councils shouldn't be crying poor.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"[Local governments] get a sizeable revenue support from the state government as well to deliver services into their local community and it is my expectation that they focus on that," Allan said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Council Watch president Dean Hurlston said councils could cut their own waste.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"What Victorians want councils to do is focus on a very defined, clear set of local priorities - your bins, your footpaths your parks," Hurlston said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Beyond that, councils are actually the ones spending the money doing all those other things that we didn't ask them to do. "</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>In the early 1990s the number of Victorian councils shrunk from 210 to 78.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Municipalities like Brighton, Sandringham, Mordialloc and Moorabbin merged into Bayside Council, while Geelong went from six councils -including Newtown and Geelong West - to just one.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The man behind that, Jeff Kennett, says it might be time for a repeat.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/australias-best-beaches-named-tourism-australia/0d2386fa-e849-4e51-b1ec-d71df357d2bb" rel="" target="_blank" title=""><strong><span>Australia's best beaches revealed by peak tourism body</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"There are 30 council areas in the metropolitan area. I'd like to see five," Kennett said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The Yarra mayor fears that the way things are going, some inner-city councils, including his, could go bankrupt in just two years unless "some sort of deal" with the state government is reached.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"I'm trying to have this debate before we get to one minute to midnight," Jolly said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Glen Eira Council yesterday announced it would become the first council to apply to exceed the state government's suggested rate cap of 2.75 per cent in order to keep its head above water.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The council, which covers inner south-east suburbs including Bentleigh, Carnegie, Caulfield and Elsternwick, is seeking to increase the residential rate cap to 5 per cent.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Council modelled several options. The evidence showed that an additional 2.25 per cent above the rate cap is the minimum increase that meaningfully stabilises Council's financial position," the council said in a statement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Without action, Council's cash reserves — which help us cover day‑to‑day costs and respond to emergencies — are forecast to fall from $67.4 million to $10.9 million by 2034–35.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"This is an unsustainable position for any council, and it would place pressure on every service we deliver."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It is up to the Essential Services Commission to approve the change.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><em><span>NEVER MISS A STORY:</span></em></strong><span> </span><em><span>Get your breaking news and exclusive stories first by following us across all platforms.</span></em></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><ul><li><strong><em><span>Download the 9NEWS App here via</span></em></strong><span> </span><a href="https://apps.apple.com/au/app/9news/id1010533727" target="_blank"><strong><em><span>Apple</span></em></strong></a><span> </span><strong><em><span>and</span></em></strong><span> </span><a href="https://play.google.com/store/apps/details?id=nineNewsAlerts.nine.com&amp;hl=en_AU&amp;pli=1" target="_blank"><strong><em><span>Google Play</span></em></strong></a></li><li><strong><em><span>Make 9News your preferred source on Google by</span></em></strong><span> </span><a href="https://9.nine.com.au/8x987w" target="_blank"><strong><em><span>ticking this box here</span></em></strong></a></li><li><strong><em><span>Sign up to</span></em></strong><span> </span><a href="https://login.nine.com.au/edm?client_id=nineatnine" target="_blank"><strong><em><span>our breaking newsletter here</span></em></strong></a></li></ul></div></div>