Rates rise by 3 per cent

By Ed Merrison
KNOX City Council last week adopted its budget for 2006-07 almost three months after the initial draft was put out to public consultation.
The budget, which entails an average rate rise of 3 per cent, including commercial properties, will operate under the same rate structure as last year after this year’s proposed budget met with widespread community opposition to a planned fixed waste service charge. The $116 charge, which was factored into an overall rate rise of 3 per cent but had the effect of redistributing the rate burden, was dropped in July after the council received a record 195 submissions, 160 of which opposed the charge.
A second draft reverting to the original structure drew only three submissions.
The council, which voted to adopt the budget at a special council meeting on Tuesday, 1 August, said the feedback from residents was invaluable and assisted in delivering an appropriate budget.
Knox mayor David Cooper said the rate increase was under the consumer price index (CPI) and well below the state average rate rise of 7 per cent as predicted by the Municipal Association of Victoria.
The percentage rise equates to an average increase of $3 for residential properties in Knox, up from $843 in 2005-06 to $846 this financial year.
“Rate increases higher or lower than the average have been influenced by property valuations, which councils are legally required to undertake every two years.
“The revaluation of properties is not undertaken to create additional revenue for council; it is used to assist council in working out how rates will be distributed across all property types within the municipality,” Cr Cooper said.
As a result of the revaluation, residential rates within Knox will now only rise by an average of 0.32 per cent in 2006-07.
Retirement villages, which stood to be hit with an average 42 per cent rise had the waste charge been introduced, will face a slightly higher than average rise of 4.89 per cent.
“The rate increase will fund a range of infrastructure improvements and responsive community services for the municipality.
“Planning for the City’s future needs and listening to the community were the guiding principals behind the 2006-07 budget that council approved,” Cr Cooper said.