Ripples over Greater Dandenong rate rise

Not happy: George Petralis's backyard will be affected by a proposed three-storey apartment block. Picture: Sam Stiglec

By CAMERON LUCADOU-WELLS

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TWO councillors are making a vigorous push to slash rates to help struggling Greater Dandenong ratepayers.

Last week Cr Peter Brown, backed by Cr Maria Sampey, was confident that councillors would rally around a reduced rise, down from a proposed 5.5 per cent (an average rise of $40, excluding extra waste levies) to about 4.5 per cent (a $33 rise).

Cr Brown suggested cuts that “no one would miss” such as abandoning a $95,000 public artwork scheme, halting $178,000 of wage rises to Drum Theatre staff and dropping $400,000 towards traffic lights at the corner of Robinson Street and Princes Highway, Dandenong.

He said the traffic light funds were unnecessary because the council was still awaiting state funding for the project. The rate rise includes an anticipated $1 million carbon tax spike.

In an email to councillors and the council executive last week, Cr Brown stated a rate rise twice the CPI [2.2 per cent] would be “inequitable and for many, unaffordable”.

“The high levels of unemployment, the reality of property values declining … the pressure on Dandenong industry … the increasing redundancies in the workforce and recent closures all suggest the council keep rates low,” he stated.

In a year in which the council revaluates properties, the pain would be felt harder in Bangholme and Lyndhurst, where property prices had risen sharply.

A 5.5 per cent rate rise would translate to an average 30 per cent residential rate rise in Bangholme, Cr Brown said. A 4.5 per cent rise would soften the blow to 24 percent.

Cr Roz Blades said she was “leaning” towards lower rates, citing the “very difficult times” on residents in a revaluation year.

After councillors met last week, mayor Youhorn Chea said councillors were locked to a “moderate” 5-5.5 per cent rate rise, to ease the pressure on future rate levels.

“It’s difficult to reduce more than that. We don’t want to have a 2-3 per cent rise this year and then 10 per cent next year.”

Some of this year’s spending included funding the new municipal complex in Dandenong (see page 5) and $1 million for renovating Springvale Town Hall, he said.

The rates rise, part of the council’s draft budget, is expected to be announced on May 21.

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