By LACHLAN MOORHEAD
NARRE Warren South residents angry at perceived changes to a special charge scheme have taken their worries to the local MP.
Market Lane residents have approached Narre Warren South MP Judith Graley with concerns over how much the City of Casey is requiring them to chip in to fix their run-down road.
Ruth, one of the residents, said she was shocked to learn recently from the council that the interest on instalments would now rise from 4.25 per cent per annum to 7.5 per annum, and possibly higher.
“It’s always been a dirt road. Council don’t have funds to seal it so we have to pay for it and then they will take over the maintenance,” Ruth said.
“The interest rate will now be over 7 per cent, and there was no consultation.
“The interest rate is 6 per cent with 1.5 per cent added on for administration duties, when we were quoted the 4 per cent, so why has our payment gone up?”
City of Casey Manager Engineering David Richardson said residents were advised of the 7.5 per cent interest rate in a notice in June, along with the declaration of the scheme.
In June the council adopted a new formula for setting the interest rate for special charge schemes.
“The interest rate charged on special charge schemes was updated annually using a formula adopted by council in 2005,” Mr Richardson said.
“The 2005 formula for setting the interest rate was the cash rate set by the Reserve Bank plus 1.5 per cent.
“The 4.25 per cent interest rate quoted in the letter to residents in February was based on this formula.
“The letter also advised that the rate was variable.”
Mr Richardson also said the notice provided advice on the opening of the submission period to appeal against the scheme through VCAT.
Ms Graley has called on the City of Casey to investigate the matter and consider Ruth’s request of reinstating the original 4.25 per cent interest rate, or less.
