2.25% rate increase proposed

A 2.25 per cent rate rise will be presented to Baw Baw Shire councillors tonight when they consider their draft budget for the upcoming financial year.

The average rate rise is in line with the state government’s rate cap.

The draft rating strategy presented to council proposes to maintain existing differentials including a 10 per cent discount for farm properties and a 20 per cent surcharge for commercial and industries properties.

The controversial 80 per cent surcharge on vacant land introduced last year is proposed to be maintained.

Owners of residential development land within the Warragul and Drouin precinct structure plan’s urban growth will pay 30 per cent more in rates if a planning permit authorising subdivision has been issued.

Urban living land property owners located in an urban growth zone will receive a 10 per cent discount to ease the rate burden.

In the draft budget, mayor Joe Gauci said council intended to focus on ensuring adequate funds are set aside to build and maintain many kilometres of roads and footpaths across the shire.

The proposed $11.6 million roads investment includes $2.7 million for road upgrade of Old Sale Rd; $1.2 million for Smith St streetscape between Queen and Palmerston Sts; $900,000 for road reconstruction works across the shire, $1.2 million for shire wide gravel road resheet works; $1.8 million for shire wide road resealing works; $900,000 for major pavement repairs and $700,000 for road upgrade/sealing works.

“The major challenges have been to meet the needs of the growing population of the shire, continuing to review its critical infrastructure renewal requirements and improve council’s overall financial position, within the constraints of the rate cap,” the report said.

The proposed budget represents income of $86.8 million and expenditure of $75.1 million resulting in a surplus of $11.7 million.

Total capital expenditure program is $22 million comprising $19.6 million new works plus $2.4 million carry over projects from the current year.

Total revenue from rates and charges for 2018/19 is expected to be $57.2 million. This amount comprises $48.7 million rates, $800,000 from waste charges, $300,000 from supplementary valuations (new property additions) and $200,000 interest on rates and charges.

Garbage service charges also are proposed to increase 2.25 per cent because of an expected increase in the cost of processing recyclables.

The draft budget will be considered by council at its meeting tonight before going on public exhibition for four weeks.