First-rate rise!

By Shaun Inguanzo
GREATER Dandenong residents will have reaped the benefits of booming local industry if councillors vote in favour of a 4.6 per cent rate rise next week.
Star can reveal that a majority of Greater Dandenong councillors are planning to vote in favour of the 4.6 per cent rate rise at Monday night’s council meeting, when they discuss the 2008-09 city budget.
The rate is significantly lower compared with neighbouring City of Casey (5.9 per cent) and the Shire of Cardinia (5.8 per cent).
Councillors, including Keysborough South Ward’s Peter Brown, said the actual residential rate would be under 4 per cent because of a property price boom in Dandenong South’s industrial area fuelled by the city’s revitalisation and also the Eastlink tollway.
Keysborough Ward councillor Roz Blades said she was pleased with the budget and rate rise figure because residents would be given some relief from surging inflation and interest rates.
“Under the rating model, a house worth 250,000 last year is this year worth about 320,000,” she said.
“The house may have gone up $70,000 in value, but residential rates will go up just under 4 per cent.”
Cr Blades said the city would not lose services despite the low rates figure.
Cr Brown said land values had increased significantly because of the Eastlink tollway and the rezoning of land from rural to industrial.
He said officers gave councillors the example of a Dandenong South property rezoned from rural to industrial.
Under rural zoning, the land was valued at $5 million, Cr Brown said.
Whereas this year a rezoning to industrial and its proximity to the Eastlink tollway has caused its value to increase to $50 million – a 1000 per cent rise that translated into rates bonanza for the City of Greater Dandenong.
Last year’s 6.3 per cent rate rise increased residents’ average rates bill to $659 for houses and $415 for units.
This year’s rate rise could mean the average rates bill increases by $24 for houses and $15 for units.
Councillors met at Kalorama last week on a one-and-a-half day retreat to discuss budget matters with council officers.
Cr Brown said councillors had planned for the rate to be as low as 4 per cent.
But the last-minute inclusion of $300,000 for urgent renovations to sports facilities at Newcomen Reserve put too much pressure on the rates figure, Cr Brown said.