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5pc rate rise

01 Jul, 2009 10:07 AM
Although Clare and Gilbert Valleys rates will be going up by about five percent, there is no good news for communities by way of new projects.

Councillors considered, but rejected, a number of proposals including a new stadium floor at the Valleys Lifestyle Centre in Clare.

Major developments such as a new Clare public library and the Clare Town Hall weren’t even on the radar for councillors who have brought down a budget which is predominantly road-related.

It’s not an exciting document, but has been touted as a responsible one with the council investing in renewing its existing assets rather than becoming involved in new initiatives.

The challenge for councillors will be to look at long term financial and asset plans to see how they can administer them in the future, particularly with so much ageing infrastructure, including roads, bridges and buildings, which need to be managed.

Councillors have had a number of meetings to consider their finances, trying to find a balance between what is needed to run the council’s core business and for new projects and what is a fair burden for ratepayers to contribute.

They thought about having a 3.9 percent increase in overall rate revenue, but decided that six percent increase in income was needed.

Not all councillors were keen to make this choice, and the vote was tied, three-all, with a casting vote required by Deputy Mayor Alan Rye.

This will see an extra $148,000 coming in, which can be set aside in a reserve fund for future projects and give the council a sporting chance of taking on unplanned for projects if funding becomes available from other sources to which it may need to contribute.

“The council is reducing its level of debt by an amount of principal repayment, which will provide the council with the capacity to borrow money in the future without increasing its debt level,” council chief executive officer Roy Blight said.

Rating is a complex business – based on the Valuer General’s idea of what properties are worth in towns – a sum usually worked out on the value of any land sales.

Rates are calculated by using the capital value of a property and multiplying this by the set rate in the dollar.

“Councillors had difficulty in seeing a rate increase, recognising the current economic situation in the wine and grape growing industry,” Mr Blight said.

“But to balance that there was the issue of a need for the council to have a revenue to cover its costs.”

As well as an increase in rates, it will cost a bit more for rubbish removal, which has gone up with the Consumer Price Index, while the Natural Resources Management levy has remained relatively stable for most properties. Contributions to the community Wastewater Management Scheme have also risen.

Despite everything going up, rate income will only be applied to maintaining the community’s assets, rather than to new projects.

“Councillors discussed not building any new capital projects unless there was outside funding,” Mr Blight said.

“They want to spend the money on renewing and maintaining existing assets.”

The exception to this expenditure pattern is continued work on upgrades to community wastewater management schemes at Saddleworth, Riverton and Clare, as funds have already been set aside from previous budgets for this - although some loan funding will also be required to complete these projects.

There is also some money available for the conversion of the Riverton Library to the LINKS network.

Main Road 45 will continue to have a focus in council’s road maintenance plans, and there is money for upgrading the drainage in preparation for future sealing, while the council will keep looking at ways of a achieving a funding solution through contributions from major users, such as the wind farm developers.

There is also provision in the budget for the closure of the Rhynie and Clare rubbish dumps.

The annual business plan is available for perusal at all the council’s offices, libraries and library branches as well as some local post offices.

Ratepayers are invited to submit comments on the draft business plan by July 15 and can then attend the July 20 council meeting where time will be set aside for community members to ask questions or make verbal submissions before the plan adopted and rates notices distributed.

What missed out:

Capital expenditure which Clare and Gilbert Valleys Councillors considered, but rejected:

Clare Caravan Park Entertainment Room $54,000

Main Streets Improvement - Bin Surrounds $40,000

Shade Structure Apex Park $55,000

Valleys Security Fencing $70,000

Valleys Stadium Floor $79,800

Recreations Grounds Auburn - Ceiling $7000

Recreations Grounds Auburn - BBQ Shelter $12,000

Auburn Institute - replace ceiling $45,000

Transport - Footpaths $100,000

Transport - Kerbs & Watertables $60,000

Trailer $50,000

Water Tanker $50,000

Ngadjuri Lodge Verandahs $40,000

Ngadjuri Lodge Roof $38,000

Local Heritage Survey $25,000

New Road Signs - purchase & installation $20,000

Wide Format Plan Printer $21,000

Street Lighting Upgrade $27,000

Flood Study Mintaro $50,000

Barbara J Long Room $54,160

Steelton Bridge $207,000

Giles Corner Bridge $117,000

Total $1,221,960

How the increase will affect ratepayers:

If there hasn’t been an increase in valuations, then rates will go up about five per cent in the Clare and Gilbert Valleys Council, while properties which have gone up in value will see a sightly larger increase in rates.

According to the Valuer General, rural property valuations have remained generally static throughout the region while residential property values have increased slightly between .5 to one percent.

“Overall residential sales activity in the Clare and Gilbert Valley has remained strong, with 250 residential property sales worth approximately $52,000,000 and showing a median price of $255,500 occurring in the period January 2008 to December 2008,” the Valuer General’s office wrote.

Properties in the former Clare District Council area saw 137 residential sales in the past 12 months, with a median price of $250,000, with about 50 vacant land sales at a median price of $82,750.

The former Saddleworth Auburn council area saw about 24 residential sales with a median price of $207,000 and 13 vacant land sales at an average of $65,000 per block.

The former Riverton District Council area saw 34 residential land sales with a median price of $205,000 and 21 vacant land sales at an average of $47,000.

Under the 2009/10 budget proposal the residential rate will be 0.4113 cents in the dollar (0.3790c in 2008/09), commercial & industry 0.5553 cents (0.5117c), primary production 0.3290 cents (0.3222c), and vacant land 0.4113 cents (0.37090).

Clare & Gilbert Valleys Council Rates Comparison

2008/09 2009/10

Rates in the $

Residential 0.3790 0.3985

Commercial 0.5117 0.5380

Industrial 0.5117 0.5380

Primary Production

0.3222 0.3387

Vacant Land 0.3790 0.3985

The minimum rate will be $500.

Rate revenue is anticipated to be $7,585,000.

Additional charges include the annual Community Wastewater Management Scheme fee (formerly STEDS) in all townships, as well as a service charge of about $162 for waste collection, which has gone up with the CPI (consumer price index).

Where the rates come from

As a percentage of the total rates raised

Clare township 26.6%

Mintaro township 1.0%

Sevenhill township 0.5%

Saddleworth township 1.9%

Auburn township 3.1%

Watervale township 1.2%

Manoora township 0.4%

Waterloo township 0.2%

Marrabel township 0.2%

Riverton township 4.4%

Tarlee township 1.0%

Stockport township 0.7%

Rhynie township 0.6%

Clare rural 26.1%

Saddleworth/Auburn rural 21.4%

Riverton rural 10.8%

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Cartoon: Mick Barnes
Cartoon: Mick Barnes

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