MELTON Shire residents are bracing themselves for a five per cent rate rise after the council’s draft budget was passed by a majority of councillors last week.

Melton Council will reap more than $52 million in rates this year, representing the municipality’s most significant rate rise over the past five years.

While previously the council had kept rates to inflation levels, this year residents will be charged a further two per cent to fund new infrastructure and capital works projects.

CEO Neville Smith said the global financial crisis had taken its toll on the council, burning a $1.2 million hole in overall earnings.

“It’s been an over-riding concern for council because we don’t want to overburden the community at a time when many people are struggling,” Mr Smith said.

“But at the same time if we’re only raising our rates by the Consumer Price Index (CPI), we’re in a diminishing situation in terms of cash flow.”

Mr Smith said he expected some residents would be critical of the rate hike.

“I think some might find it difficult and we might cop some flak because they’ve been so used to rates being increased in line with CPI.”

A new initiative will see retirement villages qualify for a rate discount.

Under the 2009/10-draft budget, the council will splash $14.4 million on more than 100 new initiatives, including $4 million on 23 capital projects.

Big-ticket projects include $1.2 million towards works at the Morton Homestead, new reserves at Caroline Springs and Burnside Heights and $1.5 million towards road and bridge works at Westwood Drive.

The council will hold a public meeting tomorrow to present the draft budget to the community.

The meeting will be held at 7pm at the civic centre library in Caroline Springs.