Slug to vacant land?

A two per cent rate rise will be presented to Baw Baw Shire councillors tomorrow night when they consider the first budget of their term since being elected in October.

But one of the big changes could be an increased rate for vacant land holdings.

Council is expected to again adopt a rating strategy based on a differential rating system, which will continue to offer a 10 per cent discount on farm properties.

However, two changes are proposed to the differential rating structure, with commercial rates proposed to decrease from a 30 per cent surcharge to 20 per cent surcharge.

The draft budget also proposes to increase the surcharge on vacant land with the 60 per cent higher rate proposed to increase to 80 per cent more than the general rate.

The draft budget presents an average two per cent rate increase based on the state government’s rate cap and a $33.3 million capital works program.

The report to council said a higher level of capital expenditure was planned from 2017/18 onwards to address infrastructure needs within the shire.

The capital expenditure program of $33.3 million includes $28.9 million new works plus $4.4 million projects carried over from the current year.

Major features of the new works include $8 million for the West Gippsland Arts Centre redevelopment and $1.5 million to develop a new Early Learning Centre in Warragul

The budget allocates $10.1 million to roads including $2 million for Warragul central business district improvement works, $1 million for shire wide road reconstruction works, $1.1 million for gravel road resheet works, $1.2 million for road resealing works, $1 million for major pavement repairs and $650,000 for road upgrade/sealing works.

The draft budget represents income of $94.4 million and expenditure of $71.1 million resulting in a surplus of $23.3 million.

Total rates revenue is expected to be $45.1 million. Waste service charges will remain the same at $376.

Council’s annual expenses are expected to increase by 4.8 per cent mainly due to expansion of current service levels as well as recruitment of a number of new positions to address compliance matters in the regulatory and building functions.

Officers said revenue was expected to increase by only 2.1 per cent, mainly due to the impact of the two per cent rate cap, nil increase to waste services charges and minor increase to grant and revenue from user charges.

The draft budget will be considered by council tomorrow night at 5.30.