Council Considers Proposed Rate RiseThe rates in the dollar will drop by an average of 26% By Bass Coast Shire Council - 23rd July 2002 - Back to News Bass Coast Shire Council will reduce the rate in the dollar that landowners will pay according to the proposed 2002/03 budget tabled at last night’s Council meeting. The rates in the dollar will drop by an average of 26% due to the increase in the value of properties across the Shire.
While the rate in the dollar will decrease, total revenue from rates and the municipal charge will increase by 12.5% to ensure Council can provide the services and facilities that the community expects.
Cr John Gains, Mayor of Bass Coast Shire Council explained that of the $31,326,947 revenue in the 2002/03 Budget, $12,847,221 (41%) would be raised by rates and the municipal charge, $6,571,132 (20.5%) from State and Federal Government grants, $ 5,402,940 (17%) from fees and charges, $3,311,000 (11%) from special charge scheme revenue, $500,000 (1.5%) from loan fundsand $2,694,654 (9%) from other sources. Cr Gains said that members of the public are most welcome to make submissions about the proposed budget and the rate rise.
"In our original planning last year we hoped to only increase rates by 5% this year," said Cr John Gains. "However, our population is growing rapidly and to keep up with infrastructure and service demands from existing and future residents we simply have to increase rate revenue."
According to statistics from the 2000 Census, Bass Coast’s population is increasing at three times the national average. The Shire’s population is growing at an average annual rate of 3.62% compared to the Victoria average of 1.21% and the Gippsland average of 0.53%.
"This increase in population is creating more of a demand on Council services, and this trend is likely to continue," said Cr Gains.
The rate increase is also due to cost shifting from state and federal governments onto local government. A recent Municipal Association of Victoria (MAV) report showed that Victorian local governments were $31 million worse off in 2000/01 due to State government cost shifting. Home and community care, maternal and child health and libraries are only a few of the services in Bass Coast affected by cost shifting. The State Government is expecting Council to contribute a higher percentage to these services every year.
"We don’t want to reduce these services so we’re forced to pick up a greater percentage of the bill every year, which basically means that we have to increase revenue through rates," said Cr Gains.
Cr Gains said that the demand for infrastructure was another reason Council proposed to raise more revenue through the rates increase. Council inherited a backlog of infrastructure needs such as roads, footpaths, foreshore and community facilities at amalgamations in 1994. Not only is Council dealing with this backlog, but there is also a need for new capital works.
Several unavoidable costs also impacted on Council’s decision to propose a 12.5% rate rise. These unavoidable costs must be met if Council is to function effectively.
"Insurance premiums and risk management activities have risen in cost, but Council must meet these costs to ensure the safety of our communities," said Cr Gains. "Increases in workers compensation and the superannuation guarantee levy is another unavoidable cost."
Cr Gains said that the high demands on town planning and home care services had meant that Council had to employ new staff in these areas, another unavoidable cost.
Council must also meet the costs of the increase in wages costs resulting from a recent Enterprise Agreement entered into with staff. These increases mean that the levels of wages paid by the Council are now comparable to similar Victorian councils.
"Allowing for inflation, since 1994 rates have only risen by 3.1% in real terms" said Cr Gains.
He went on to explain that Bass Coast Shire Council’s rate revenue was cut by approximately 20% in 1995. Since then, Council had increased rates but when inflation is taken into account, the overall adjustment means that rate increases are only marginally over the rate of inflation.
It is proposed that the municipal charge that is levied on each property is increased by 12.5%. This will increase the charge from $86 to $97. The municipal charge is used to recover some of the administration costs of Council.
The proposed budget also includes a increase in the garbage charge from $105 to $129 to cover the increasing costs of kerbside collections, recycling and the operation of Council’s Waste Transfer Stations. Every dollar of this charge is used to fund waste and recycling services in the Shire.
Different rates apply to different types of properties in the Shire. It is proposed that the following rates apply in the 2002/03 rating year:
Developed Land Rate – this rate applies to most residential, commercial and industrial properties and was charged at 0.3700 cents in the dollar in 2001/02. It is proposed that this rate be decreased by 26.4% to 0.2725 cents in the dollar.
Vacant Land Rate – this rate applies to land on which there are no buildings and was charged at 0.5550 cents in the dollar. It is proposed that this rate be decreased by 26.4% to 0.4087 cents in the dollar.
Farm Land Rate – this rate applies to properties which are two hectares or more in size and are used for farming purposes as per the Valuation of Land Act, and was charged at 0.333 cents in the dollar. It is proposed that this rate be decreased by 18.2% to 0.2725 cents in the dollar.
Cultural and Recreation Land Rate – this rate applies to land which is used by community based organisations which are run on a "not for profit basis" and provide community cultural and recreation facilities, and was charged at 0.2220 cents in the dollar in 2001/02. It is proposed that this rate be decreased by 26.4% to 0.1635 cents in the dollar.
Public Housing Land Rate – this rate applies to land on which are situated Ministry of Housing units for elderly people and was charged at 0.1850 cents in the dollar in 2001/02. It is proposed that this rate be decreased by 26.4% to 0.1362 cents in the dollar.
Members of the public can view the proposed budget at any of Council’s Customer Service Centres as well as libraries in the Shire. Submissions are invited and will be received until 5.00 p.m. Tuesday 6 August 2002. Submissions will be heard on 7 August 2002. The Council will again consider the Budget at the Council meeting on Wednesday 7 August 2002.
More information about the budget documents or processes is available by contacting Council on 5671 2211 or 5951 3311.
Source: www.gippsland.com Published by: news@gippsland.com
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