HOMEOWNERS in Braybrook, Maribyrnong and West Footscray may be sitting on a real estate boom but new rates will hurt hip pockets.
Maribyrnong Council has raised rates by 5.9per cent overall in 2010-11, a
rate in the dollar of 6.35 cents, contributing $61.024million to the council's coffers.
Revaluation data shows residential property values have increased by between 11 and 23per cent across the municipality since the 2008 state government-mandated valuations.
Of 33,745 rateable properties, 28,216 will have an increase while rates will drop for 5529 properties.
The biggest jumps in average value have been in the suburbs of Braybrook (23per cent), Maribyrnong (21per cent), and Footscray and West Footscray (both 18per cent).
Council's sustainable development general manager, John Luppino, said price growth in recent years in suburbs such as Yarraville, Seddon and Kingsville was driving people to look to Maribyrnong's "outer" suburbs of Braybrook, Maidstone and West Footscray.
"People who are wanting to move to the west or inner city can't afford to buy in Yarraville, Kingsville and Seddon so now they're looking to other areas."
Maidstone resident Justin Ryan wrote in a letter to The Mail that ratepayers were getting a raw deal.
"In a municipality which is at the top of the charts for social disadvantage, the latest rate rises will place further upward pressure on rents and impose considerable stress on pensioners who own their own home.
"As a blatant exercise in cynical spin, pensioners will get a much-trumpeted $4 increase in the pensioner rebate to $69."
Maribyrnong Residents Association secretary Alan Ross said it was another blow to ratepayers' hip pockets.
"Ratepayers have been getting ripped off rates-wise for years in the City of Maribyrnong and this adds fuel to the fire."
Mr Ross said pensioners who moved into the area many years ago would be hurt most by big jumps in valuations coupled with rate rises as well as rising utility costs.
From the start of this month, City West Water increased its water usage charges by 22per cent and sewage disposal by 8.9per cent.
Residents face an increase of about $100 a year on an average bill based on a charge of 28 cents a day.
Residents have also worn electricity price hikes this year.
Mr Luppino said the valuation system did not recognise people's capacity to pay.
The challenge for the council was to attract investment to existing industrial areas to halt flagging property values in those areas.
Once industrial areas experience value growth, they could shoulder a greater portion of the overall rates burden, he said.