Rates Soar Rates Soar

Rates soar - MELBOURNE home owners face annual rate rises of up to $115 next year.

Ratepayers in 31 metropolitan councils can expect to pay as much as 20 per cent more.
Councils blamed the higher than expected increases on a blow-out in council superannuation, the fire services levy and new WorkCover requirements.

The worst-hit region will be bayside Kingston, where residents face a median rise of $115, up to $769.

Ratepayers yesterday lashed out at the rises, proposed in draft council budgets so far released by 22 councils.

Moorabbin Residents Association chairman Tom Uren said residents were being loaded up with extra costs.

"I don't think it's fair and I certainly don't believe we should be in any way subsidising the superannuation of people who are being paid fairly substantial salaries,"he said.

Municipal Association of Victoria president Brad Matheson said ratepayers faced the biggest rates rises in six years.

He said large external costs would mean "fairly significant"rates rises.

"We expect average rate rises between 5 and 8 per cent."

The $114 million unfunded superannuation blow-out was a problem for councils already facing recurrent costs exceeding CPI, he said.

"The Victorian auditor-general indicated councils are not spending nearly enough on infrastructure maintenance and upgrading, and it's very difficult for councils to do that when they're hit out of left-field with those types of imposts."

Kingston chief executive Rob Skinner said the superannuation black hole had added 5.5 per cent to rate rises, while the fire services levy added 2 per cent.

Figures compiled by the MAV show median rate rises proposed by councils in draft budgets vary from $14 to $115.

Boroondara, which takes in blue-chip eastern suburbs, faces the highest median rates of $1061.

Cardinia's median was the lowest at $564, up $37.

Mr Uren said residents were angry councillors had given themselves wage rises while hitting ratepayers with large rates increases.

Ratepayers Victoria president Linette Treasure said councils were taking on too much and expecting residents to bear the burden.

Administration costs should be cut, she said.

"In some shires it is claimed that administration takes as much as two thirds of rate revenue,"she said.

Cr Matheson said local government should not be blamed for this year's large rises.

"It's important that people understand that councils need to close the asset depreciation gap,"he said.

The median is the middle figure in a group of numbers, where half the figures are lower and half the figures are higher.

Source:
By MICHELLE ROSE, urban affairs reporter
14jun03
https://www.heraldsun.news.com.au/
common/story_page/0,5478,6592667%255E661,00.html

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