By VANESSA CHIRCOP
HOBSONS Bay residents face an average rate hike of 6.3 per cent this year.
The increase comes despite millions of dollars less being spent on the city’s capital works program.
The 2012-13 proposed annual budget was tabled at last week’s council meeting, with a number of councillors raising concerns and two – Cr Angela Altair and Cr Peter Hemphill – voting against the steep rate rise.
Last year’s budget featured a $29.8 million capital works program and a 5.95 per cent rate increase. This year’s proposed capital works expenditure is just over $22 million.
Cr Altair said she never supported such a hefty rate rise.
“These are tough times for our citizens,” she said.
She noted the council will soon be debt free because they don’t rely on borrowed money.
“Having said that, this report also points out that our reliance on rates is at a dangerous level – it’s something like 72 per cent and the average in the metropolitan area is something like 50 per cent.
“The demand and need for us to find other sources of revenue only increases with time and becomes ever more urgent.”
Cr Peter Hemphill said 6.3 per cent was too high especially when considering Toyota recently sacked 350 workers – many who live in Hobsons Bay.
Mayor Tony Briffa described the proposed budget as strong.
“It is a strong budget based on a policy of not borrowing to pay for projects, paying the additional costs of the new Carbon Price, the significant reduction in grants from the State and Federal governments, and the additional burden of governments shifting the costs of services they are supposed to fund onto councils and therefore ratepayers.”
Cr Briffa said he was disappointed in the councillors that chose to speak against the proposal.
“It seems some councillors will do anything for positive publicity in an election year,” he said.
He said the average 6.3 per cent rate rise was reflective of the costs of the services the council provides to the community and, like residents, the council is also faced with rising costs.
The proposed budget is available for inspection at the Hobsons Bay Civic Centre, all Hobsons Bay library branches and online at www.hobsonsbay.vic.gov.au
Comments on proposals contained in the budget must be received in writing by 5pm on Thursday 31 May.
Submitters can ask to be heard at a council meeting on Tuesday 12 June.