COMMERCIAL and industrial property owners in Frankston may soon see a big increase to their council rates.
Frankston Council’s draft budget for the next financial year has been presented to councillors.
Rates charged on commercial and industrial properties in the Frankston municipality are expected to sharply increase in the coming year.
Frankston Council estimates average rates on commercial properties will increase by more than 14 per cent. Rates on industrial properties are expected to increase by a little more than 33 per cent.
The draft budget reads that rates on residential properties will increase by less than one per cent, and that the total average changes to rates and municipal charges will not exceed the state government’s 3.5 per cent rate cap.
In the draft budget papers, council officers said a recent revaluation of house prices was the reason for the rate rises. They wrote that they conducted an evaluation of Frankston properties in the 2022/2023 financial year, which found that local property valuations had decreased by 3.24 per cent.
Frankston Council projects a surplus of nearly $28 million for the 2023/2024 financial year. That figure is inclusive of capital grants which are allocated to specific projects.
Without capital grant funding, council has projected a $4.1 million deficit as its adjusted underlying result.
A funding injection of $20.1 million for Kananook Station car park works is the largest council will receive in the next financial year.
Other major projects Frankston Council has budgeted for in the next financial year include pavilions at Jubilee Park, Eric Bell Reserve, and Ballam Park Athletics Club.
The state government sets the rate cap each year. The rate cap limits the amount a council can increase its total revenue collected from general rates and municipal charges compared to the previous year.
Local government minister Melissa Horne announced the 3.5 per cent limit for the 2023/2024 financial year in December. She said, “the rate cap for the next financial year takes into account higher inflation and the need to protect Victorians from uncontrolled rate hikes, while ensuring councils can continue to deliver vital community services.”
“Each council is responsible for setting rates within the rate cap based on the needs of their community,” she said. “Community members have the chance to engage with their local councils as they make decisions about rate rises through their budget process each year.”
Frankston mayor Nathan Conroy wrote a message to ratepayers in the draft budget. He said that the 2023/2024 budget is “a balanced and transparent budget that truly represents the needs and values of our community.”
Frankston councillors were expected to vote on the draft budget on Monday, shortly after publication deadline. It will then go out for community consultation.