Valuations impose an unfair cost to owners

The revaluation of an agricultural property on Warragul’s urban fringe saw rates increase three-fold for property owners.

Gary Surman, who owns the property where Wild Dog Winery and Hoggett restaurant is located, said revaluation of their land last year had a huge impact on their rates.

Mr Surman said their rates bill went from $7000 to $21,000 in one year.

As a result, he said the rates increase had put enormous financial strain on the two businesses that operate from the property.

Mr Surman said he had a problem that a valuation based on speculative land prices and sales was then transferred to farmers.

Baw Baw Shire was asked to consider a reduction in rate revenue rather than impacting general ratepayers if council decides to lower the differential rate for genuine farmers in growth areas.

Kerry Elliott asked if council had considered a reduction in revenue without impacting on ratepayers by embarking on a process of cost cutting.

During his presentation at the community briefing, corporate and community services director Mark Dupe explained council set what was required for rates revenue each year and the rating strategy was set in line with the required revenue.

Mr Dupe said changing the differential rates breakdown did not change the rates council needed to raise each year.

He said if the differential of one property class decreased, another class would have to pay more to raise the same total rate revenue.

Responding to Mrs Elliott, chief executive officer Alison Leighton said council was consistently looking at where efficiencies and cost savings could be achieved.

Former Buln Buln Shire valuer John Bundle attended the briefing and said property valuations were a way of distributing the rate burden.

It’s quite a stupid method because two houses get the same services regardless of their value, he said.

For farmers in the urban growth area, Mr Bundle said the services provided to them were no different to the farmers out of town.

“So essentially the valuations are high and they are being capital taxed. It’s not the business of council to impose taxes,” he said.