KINGSTON property owners will have to fork out an average of about $70 extra on their rates next year, with council proposing a “moderate” 4.25 per cent annual rate rise under its 2014-15 draft budget.
The council has affirmed its commitment to keeping rate rises to “a minimum” in order to deliver “solid value for money” to ratepayers during the current tough economic climate.
While well above the inflation rate, which stands at 2.9 per cent, Kingston’s proposed rate rise is lower than that of surrounding municipalities, which have pencilled in increases of between 5 and 6 per cent, and well down on the hefty 8 per cent hike property and business owners were hit with in 2010-11.
The council’s 2014-15 draft budget, which was tabled last week, also commits to keeping rate rises at 4.25 per cent for the next three annual budgets.
And in further good news for Kingston rate payers, the draft budget proposes no increase on both waste service and municipal charges, while also maintaining the $80 rate rebate for pensioners, which is in addition to the $208 state government rebate).
But an official re-evaluation of property values this year could force rates up much higher for some Kingston property owners, with real estate price increases fluctuating wildly between Kingston suburbs over the past two years.
The average house price for Kingston is $600,000, up 5.4 per cent on last year and about 10 per cent higher than in 2012, when Melbourne’s real estate market was in retreat. The average price of a unit is $435,000, a rise of 5.2 per cent over the past 12 months.
But some areas have experienced dramatic property price increases since 2012, especially in case of apartments in suburbs such as Chelsea Heights, Edithvale and Cheltenham, with rises of up to 20 per cent over the past two years.
Those owners face significantly higher increases in their rates bills than the proposed average 4.25 per cent rise, offset by lower increases for property owners in suburbs where price rises have been flatter.
The moderate rate rise coincides with contractions in other council revenue streams, most notably government grants, which are down 75 per cent on the current financial year, and means council has been forced to keep a tight rein on costs.
But Kingston mayor Cr Paul Peulich said costs would be kept in check by “prudent financial management” and a modest capital works program rather than cuts to vital services provided to the community.
“Council has worked hard to deliver a balanced budget that takes into account the needs of the community, expected levels of service and the community’s capacity to pay,” Cr Peulich said, adding that particular attention had been given to mounting financial pressure on pensioners.
“Kingston’s focus is on working with what we have, containing costs, renewing assets and investing in new capital works using state government grants to co-fund projects where possible.”
Kingston’s capital works program is budgeted at $44.9 million for the 2014-15 financial year, with major projects including the Edithvale Family and Children’s Hub ($3.4 million), Parkdale Family and Children’s Hub ($2.2 million) and Bonbeach West Pavilion ($1.4 million), as well as flood mitigation ($3.8 million), roads reconstruction ($2.7 million), footpath renewal ($1.5 million), and LED street light fittings replacement ($1.5 million).
Kingston CEO John Nevins said the draft budget projected a net operating surplus of $15.5 million on revenue of $179.8 million and total expenses of $164.3 million.
With the council’s focus on “responsible financial constraint” Mr Nevins said the proposed budget reflected the “current global economic environment, is forward-looking, financially responsible and, most importantly, facilitates the achievement of all of the 2013-2017 Council Plan strategic objectives”.
But the emphasis on Kingston “living within its means” meant the council “does not have sufficient resources to immediately meet all of the expressed community demands for new assets and the renewal of existing assets”.
“However, to address this challenge, council is focusing its capital works program to place a greater emphasis on asset renewal rather than the creation of new assets or the upgrade of existing assets.”
Kingston residents are invited to have their say on the 2014-15 draft budget, with a number of public consultation initiative organised including a public information session. The draft budget can be viewed by on council website or at Kingston customer service centres and libraries.
