HOBSONS Bay Council is blaming the impending carbon tax among other factors for a proposed 6.3percent rates across the city next financial year.
A report to the council states the rates hike is due to the carbon price which comes in force from July.
This will push up the cost of street lighting, waste collection and tipping.
Tax costs associated with October’s council election and the redevelopment of Williamstown library and Laverton Community Hub are also blamed.
Individual rate rises will vary this year due to the revaluation of properties.
After the previous revaluation, in 2010, Laverton rates jumped 24percent although the city’s average rates rise was 5percent.
Real Estate Institute of Victoria data shows that Hobsons Bay’s median house price last year dropped 3.1percent to $595,000, down from $614,000 in 2010.
The median unit price was $450,000, up 7.1percent from $420,000 in 2010. But REIV communications manager Robert Larocca said the relationship between property values and rates was often misunderstood.
“Values relative to other properties in the council [area] will determine how much of the rates income the owner pays, so if one area’s values increase to a greater degree than another, they may pay a higher proportion.”
Hobsons Bay Residents Association spokesman Colin Palmer said the proposed increase was disappointing.
“The association has long campaigned to keep rates as low as possible, so we are disappointed the council believes they have no option but to raise rates by 6.3percent.”
Mayor Tony Briffa said the “higher than desired” rise was also due to significant cost shifting by the state and federal governments.
“The council’s operating budget will ensure the council can continue to provide vital services.”
