Property boom no rate boon

By Shaun Inguanzo
GREATER Dandenong council says a property price boom affecting rural and industrial land in Dandenong South will not generate extra revenue for the city in the 2008-09 budget year.
Star reported last week that residents owed the modest rate rise of 3.67 per cent to a property price boom in Dandenong South’s industrial and rural area that had seen some properties increase in value by up to 1000 per cent – hence paying greater rates.
The increase was the result of a biannual, independent valuation conducted across Victorian municipalities as required by law.
The 3.67 per cent rate rise is considerably lower than the six per cent the council had forecast in its 10-year financial plan.
Although industrial property owners will be paying a greater share of the rates in the 2008-09 budget, therefore giving residents a lower rate increase, the council said it would not receive any extra revenue.
Corporate services director Mick Jaensch said a revaluation meant the rates were redistributed.
Budget figures show that the council will collect less revenue in the coming year than in 2007-08.
In 2007-08 total revenue was set to be $117 million, whereas the 2008-09 budget forecasts $115.5 million.
But Dandenong South and Keysborough South developments will still generate income for the council, with developer contributions being collected from the Keysborough South Stage Two and Three projects, and Dandenong South Structure Plan, for the first time.
The contributions will help to pay for infrastructure that will support the developments in the industrial area.
These projects will generate almost $11 million in developer contributions.