THE “significant” rise in value of Frankston homes is the reason that residential ratepayers could be slugged with a rate rise, the Frankston mayor says.
The Frankston Council budget currently out for consultation reveals that residential rates are expected to increase by around 3.9 per cent on average in the next financial year, while commercial property rates will decrease by around 8.5 per cent.
Frankston mayor Nathan Conroy said that a recent independent re-evaluation of Frankston properties had found that residential sites have increased in value by 26.01 per cent, meaning some residential ratepayers will have to pay more.
“Overall, property valuations across the municipality have increased by 24.30 per cent. Residential properties have increased by 26.01 per cent, whereas commercial properties have increased by 6.98 per cent. The reason why commercial properties will receive a rate reduction is because their overall valuation increase was lower than the municipal average,” Conroy said.
“The annual revaluation may have an effect on the overall percentage increase experienced by individual property owners. In some cases, ratepayers will find that their rates bill has changed by more or less than the current rate cap from the previous year. The reason this may occur is due to the valuation of the property increasing greater than the overall municipal average. Overall rates will increase on average by the state government rate cap of 1.75 per cent.
“Many municipalities across the state have seen significant rises in property values, including Frankston City. Valuations do not change the level of rate income; however determine the allocation of the rate income pie among ratepayer classes.”
A proposal to cut rates by five per cent was debated by Frankston councillors in April, but was ultimately voted down (“Rate cut for residents rejected” The Times 12/4/22).