Melbourne City Council expected to go into deficit for a second year running as rates soar in order to pay the exhorbanent costs of the City Council .
Meanwhile John So, Melbourne Million Dollar a year Lord Mayor who hardly ever attends Council's finance and governance meetings, will take leave when the City Council brings down its budget that will see in the election of a new Council,
Property values in the City have soared in the ;last two years and as a result the amount of money paid in rates has increased substantially, providing a win-fall for the city. Melbourne City Council works on a NAV (Net Annual Value) rating system based on the valuation of rateable property in the City. As property values increase size does the amount of rates paid top the extravagant financially irresponsible city council.
On top of the rate increase that Council is also expected to gain a windfall in funding thought secondary incomes streams such as the Road Congestion tax and additional service fees that have crept in under John So's watch.
Asset rich income poor. The hardest hit in the rate increase will be pensioners and residents on a low income. Many ratepayers and residents of the city will soon find it too expensive to live within the City boundaries will be forced to sell up and move to a cheaper place to live outside the city.
Deficit budget is not good for Melbourne.
A deficit budget would see Melbourne's financial position worsen yet again as John So continues his high spend fest, minimal care over Melbourne's future.
Melbourne City Council and John So faces re-election in November and it is unclear if John So will run for a third term as Melbourne's Lord Mayor. John So has become Melbourne Most travelled lord Mayor has he and his staff continue to milk the City's treasury to funds John So's Chinese adventures. A deficit budget will add further financial pressure on the new City Council.
If the new Council does not come to terms with Melbourne high cost big spending administration it will soon face bankruptcy adding further to the financial pressure and possible future devaluation of property which will further diminish the City's financial stability.