Who will compensate us?

I strongly oppose any rate increase by City of Monash Council to compensate the shortfall anticipated due to its decrease in interest revenue during the economic downturn. Many residents, including myself, also have money in the bank, and we also acquire less interest. Who is going to compensate us? This is a double whammy for the rate payers.

During the previous revaluation, there was uproar about the sharp increase in council rate for some properties. Due to the real estate boom, many property prices and therefore the capital improved value (CIV) and Net Annual Value (NAV) jumped substantially. The flow on effect of higher NAV results in increases in water rate charges, and higher Site Value (SV) means higher land tax. In the next revaluation, is the Council going to “devalue” the SV and/or CIV if the economic crisis continues and the real estate market does not recover?

I understand that the rate revenue increase was 6%, which was higher than the inflation rate of about 4% at the time. If the SV and/or CIV were to decrease (in my dreams) during the next revaluation, the rate revenue budget increase will definitely be in double-digit.

Unfortunately I was not elected to the Council to speak out on behalf of the rate payers on this and many other issues at the Council Chamber. As a rate payer, I have self interest in an equitable rating system. I would like someone - the Mayor, Councillors or City Executives to come up with a plausible argument why using CIV is a better rating system than using SV. I do not accept the explanation that all other councils use CIV as a basis for rate calculation, and therefore this must be a goer!

If the economic crisis gets worse, the Council may have to release a mini-budget to cut or defer implementation of non-essential services.