By CAM LUCADOU-WELLS
Warning follows last council budget before rate capping kicks in…
GREATER Dandenong Council has warned that rate capping will squeeze $50 million out of future services and major projects over five years.
In its draft budget to be considered by councillors on Monday night, the council announced a 5.5 per cent residential rates rise in 2015-16 – the last budget before rate rises are expected to be capped to CPI.
Corporate services director Mick Jaensch said there had been no attempt to “beat” rate capping in the draft budget.
This year’s rates hike was lower than the council’s forecast 5.9 per cent and comparable to recent years’ rises, he said.
Thc council had also not resorted to any new borrowing as it increased this coming year’s capital works, library, school-crossing guards and parks spending.
If the budget passes, kerbside waste charges will, however, escalate by 9 per cent – up between $19 and $25 depending on bin sizes.
That rise has been partly blamed on a $414,000 drop in the sale of recyclables due to waste contamination in residents’ bins.
For a median property with a 120-litre bin, the combined rates and waste bill will rise from $1108 to $1178.
Things, however, look more austere under rate capping after 2015-16, with the CPI rising just 1.3 per cent in the 12 months to March 2015.
Mr Jaensch said the delivery of $35-$45 million Springvale civic project by 2020 would not be affected.
But other projects such as new community facilities in Keysborough South, a pavilion in Tatterson Park, a refurbishment or redevelopment at Oasis Aquatic Centre and the Dandenong Community hub would be delayed, deferred or abandoned.
In the draft budget, the council has still forecast steeply rising capital works spending up until 2018-19 – largely funded by savings in the operational budget which covers maintaining buildings and parks, waste collection, roads, street cleaning and street lighting.
Mr Jaensch said operational services would need to be cut or capital works, including major projects and asset renewal, would come to a “grinding halt”.
In this year’s budget, the major project allocations include $3 million for acquiring land for the Keysborough South Community Hub, $1.5 million to start work on the Springvale civic precinct and library redevelopment and $1 million to finish works at Ross Reserve, Noble Park.
Money has also been allocated for floodlights at Noble Park Junior Football Club, works at Tatterson Park Pavilion and Alan Carter pavilion at Greaves Reserve, Dandenong, and to relocate Dandenong’s toy library and maternal and child health services.
Other highlights include the establishment of a City of Greater Dandenong charitable fund and $500,000 towards traffic lights at the notorious Robinson Street-Princes Highway intersection.
The council hopes VicRoads will complete the $2.5 million Robinson Street project next year.
Further money has been allocated to Dandenong’s Civic Square, Christmas decorations and New Year, Lunar New Year and short film festivals.
