HOBSONS Bay residents, businesses and industry will pay an extra 6.9 per cent in rate charges for 2007-08 to help finance nearly $25 million in infrastructure renewal and replacement.
That means owners of a $300,000 home will pay an extra $53 on their rate bill this year.
Hobsons Bay City Council mayor Leigh Hardinge said its no-borrowing budget continued a financially responsible program to pay off the city’s $4 million debt by about 2012.
None of the council’s $540 million in assets would be sold, he said.
“We certainly won’t be selling off the farm to balance the books,” he said.
Rates contribute about two-thirds of this year’s city’s budget, with other revenue sources, including state and federal grants, user fees and nearly $2 million in parking meter income and parking fines.
The council expects to complete several landmark projects by next year, with $6.4 million allocated for the redevelopment of the BayFit Leisure Centre, and nearly $2 million for the Altona Sports Centre.
The two projects combined absorb about one-third of this year’s capital works budget.
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Salaries and costs for the city’s 770 employees are budgeted to increase by about $2 million to some $35 million.
This year’s proposed 6.9 per cent rate hike contradicts 2004 pre-election promises from Labor councillors of capping rates with inflation, now about 3.2 per cent.
Rates for the city’s 34,000 households rose last year by 7.9 per cent, and in the previous year, by 8.9 per cent.
Cr Carl Marsich said extra insurance costs, infrastructure spending and technology upgrades could explain the broken promises.
The council’s plan forecasts annual rate increases of 5 per cent for the next three years to help pay for a total of $100 million in capital works projects over five years.
“There’s no free lunch,” said Cr Hardinge.
But Joy Carlson, 69, of Grieve Parade, Altona, said she found the continual hefty increases “absolutely disgusting”.
The $800 she spends on annual rates for her three-bedroom unit is 65 per cent higher than what she paid in the late 1990s.
“With those kind of increases, we don’t expect to have fewer services. We were better looked after when we were the old City of Altona,” she said.
Pensioners are entitled to a subsidy of up to $213 on their rates, and hardship allowances are available.
Angus Scott Walker, president of the Newport Traders Association and a real estate agent, said the council was doing a good job attracting more businesses to the city.
But he questioned some infrastructure spending.
“They seem to have gone round-about crazy in some areas, which I’m not sure is what we need to keep the city moving. We would be better off resurfacing the streets,” he said.
Neighbouring municipalities have proposed average rate hikes of 8 per cent in Brimbank, 4 per cent in Wyndham and 6 per cent in Maribyrnong.
Residents have until 12 June to make submissions or comments on Hobsons Bay’s draft budget.
