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Rising Property Values Will Impact On Rates

The boom in the Victorian property market is expected to impact on rates across all Shires during this financial year

By Karen Gregory - 13th August 2002 - Back to News

The State Government requires properties to be revalued every two years and the Valuer General has indicated that, due to the increase in property values, the latest valuation could impact on rates.

Ratepayers in Wellington are about to receive their rates notices for 2002-2003 based on a revaluation of properties that’s shown an average increase of 13 per cent and upwards across the Shire to December 2001.

The good news for householders is that the revaluation has recognised the higher capital value of many properties. And this higher capital value will not necessarily result in higher rates for everyone.

Wellington Shire’s Director of Corporate Services, Brendan O’ Loughlin said that Council had taken into account the overall increase in the valuation base of the Shire and reduced the rate in the dollar to compensate for any increase in overall valuations.

"Council has decreased the rate in the dollar by 6.6% to offset the increase in values.

As a result, a number of property owners will pay lower rates this year.

"Generally, however, rates and charges will be lifted by 4.5%.

"Council has looked at the bi-annual valuation figures and noted that there’s a shift in value from rural to urban properties – however, it’s by no means a uniform shift.

"Across the Shire most properties have increased in value, but there’s no doubt that some have increased far more than others – particularly on some rural properties where significant improvements have been made since the previous valuation was carried out two years ago.

Brendan said that Council and officers had worked successfully over the past two years to financially reposition the organisation.

"This has meant tight control over expenditure, tackling debt and targeting investment in required assets.

"Over the coming year, Council will concentrate on improved customer service, sound asset management principles, retention and enhancement of services and financial sustainability."

One fundamental change has been the balance between the municipal charge and garbage charge. Last year both charges were set at $127.00. This year the municipal charge is $130.00 and the garbage charge has been lifted to $136.00 in line with the policy of meeting costs and the extra investment required in managing waste.

"This will continue the shift in total cost to users of the garbage contractors. Compared to private waste operators it is very competitive," said Brendan.

"Importantly, Wellington Shire Council has delivered its first operating surplus since it was formed in late 1994. The significance of this is that it was achieved with additional funding for roads and a sound organisational policy on financial matters. It’s a program embraced by our management team to deliver the best outcomes possible for our community.

"Debt has been highlighted as a major priority for Council. In a report published last year it was revealed that Wellington had the largest debt per capita of any Council outside the metropolitan area.

"Council has been aggressively reducing that debt, $1.5m in 2000/01, $2.5m in 2001/02 and up to $1m in 2002/03. This program will deliver benefits to our community as it will mean less of the budget is applied to debt servicing and more to asset renewal and services.

"The aim is to reduce the overall debt from a high of $22.5m to a much more manageable level of $15m. The annual debt servicing cost (principal and interest) has been running at around $4m. Broadly, the strategy is to cut that to about $2.5m annually.

Source: www.gippsland.com

Published by: news@gippsland.com

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