THE City of Whittlesea has proposed a five per cent rate rise, blaming the federal and state governments for making the council a “tax collector” on their behalf.
In the proposed budget $34 million of the council’s almost $150 million income for 2012/13 will be spent on capital works and $100 million on council services.
The mayor Cr Stevan Kozmevski (pictured) said residents were “finding it hard” and the council had drawn up a modest increase.
“We face complex financial challenges due to a growing population, rising external costs such as the federal government’s carbon pricing [tax] which adds $1.5 million to the budget bottomline, and another increase in the state government landfill levy [of $2.37 million],” he said.
With more than 8500 people moving to the city in the past year, there was pressure for more services, facilities and infrastructure in both new and established areas, he said.
A council spokeswoman said that under the new rate home owners would pay about $300 for every $100,000 of their property’s value, so $900 for a $300,000 house and $2100 for a $700,000 house.
Michael Bradley, president of the Mernda and Districts Residents Association, said a five per cent rate increase could add $50 a year to the average rates.
“This may seem small and insignificant, but in the overall scheme of things it appears that residents are being hit with carbon tax charges for everything,” Mr Bradley said.
Without the carbon tax, he said the rate increase would be “acceptable”.
A Northside Christian Church pastor, Irene Shand-Len, said many locals who had moved to the area for affordable housing were under financial stress.
“A $50 rate rise may not mean much but when the overall cost of living is increasing, then it can be the straw that breaks the camel’s back,” she said. She said she was seeing hundreds of families in her suburb of Mernda struggling to pay for basics.
South Morang resident and father of one, John Brown, said he did not mind paying an extra $50 if it was value for money.
Another South Morang resident Rebecca, who did not want her surname used, said the council had to upgrade local roads to solve traffic congestion, especially near the train station.
The draft budget is open for public submissions until June 29.
