A release:The Local Government Business Forum has today released a report calling for binding referendums on major council spending projects, giving ratepayers a way of saying yes to projects that they support. The Forum’s report Local Government Spending Referendums recommends requiring councils to hold binding referendums for significant capital projects exceeding $500 per ratepayer or 5% of annual operating expenditure. “Ratepayers deserve a direct say in major spending decisions on non-essential projects. Our proposal offers a democratic ‘third way’ between uncontrolled local government spending and centralised rate capping,” added Dr Eric Crampton, Local Government Business Forum spokesperson. You cap rates generally to inflation, but you hold binding referendum on major projects, which if approved can breach the rates cap.