By Kerri-Anne Mesner
THEaverage Maribyrnong City Council ratepayers will have to find more than $1000 a year as the council plans a 6 per cent hike in rates for 2007/08 financial year.
The council released its draft budget last Wednesday totalling $76.45 million. Of this amount the council will raise $48.442 million from residential, industrial and commercial rates.
According to graphs provided by the council on Wednesday, last year the average Maribyrnong Council home owner paid just over $900 in rates, while the average South Yarra home owner (Melbourne City Council ratepayers) paid more than $1000.
Melbourne City Council said while it was still working on its draft budget, it was seeking to ensure rate rises reflected CPI, forecasted to be 3.2 per cent.
Maribyrnong mayor Michael Clarke said while Melbourne City Council had been able to keep its rate rises at CPI in the past, it was unfair to compare the two councils’ rises as Melbourne City Council draws “huge income from car parking investments”.
This will be the last budget for corporate services manager Nick Foa, who leaves the council on Friday.
It will also be a milestone for the council as it will be the first time in more than a decade that the council debt will dip under $20 million.
“At the end of the financial year, it will be below $19.089 million,” he said.
“It’s a milestone for this organisation.”
Maribyrnong City Council inherited a $33 million debt when the state-wide council amalgamations occurred in 1994.
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Cr Clarke said the council had paid $2.398 million off its debt in the past year.
The draft budget highlighted plans to spend $15.347 million on community buildings and infrastructure and $738,000 on new environmental initiatives.
“Council’s spending priorities in this year’s budget have been heavily influenced by our Council Plan 2006-10 priorities of transport, environment and employment,” Cr Clarke said.
“Our proposed rates rise this year is 6 per cent — 3.8 per cent to cover CPI and cost shifting, and 2.2 per cent to go to our Community Infrastructure Fund.”
He said the Community Infrastructure Fund — introduced last year — was essential if Maribyrnong Council was to bridge the infrastructure deterioration gap.
“Our city’s age and industrial heritage, along with more and more truck traffic tearing up our local roads, means our $500 million-plus of infrastructure — 90 per cent of which are roads and footpaths — are deteriorating at a rapid rate,” Cr Clarke said.
“Because of this, we’ve increased council’s spending on capital improvements by almost $2 million in the last two years — from $9.7 million in 2005/06 to $11.6 million this year.
“If the State and Federal Governments continue to cut funding to local government services and infrastructure, then more and more of the financial burden will fall to our residents and businesses.”
He said a community forum was held in April which was attended by 17 community members.
“There was a lot of support for the direction we’re heading although it was made clear we can’t neglect day-to-day amenity issues like fixing potholes,” Cr Clarke said.
“We think we’ve achieved a good balance with this budget. We’ve listened to our community and expanded some services, including increasing Community and Cultural grants funding, extending the opening hours of the Maribyrnong Aquatic Centre and increasing public internet access at our libraries.
“It’s always tough to decide what the priorities are for our city — but this year we’ve been able to do more for our environment, maintain over 80 services and put more money into fixing up our community buildings and infrastructure.”
The Proposed Budget 2007/2008 is available at Council Customer Service, Maribyrnong Libraries and www.maribyrnong.vic.gov.au.
Written submissions must be received by 5pm, Thursday 31 May, 2007. The final budget will be considered for adoption at the Council Meeting on Tuesday 19 June, 2007.