Increased surcharge encourages industrial land development
Owners of vacant commercial or industrial land are set to be slugged a 140 per cent surcharge on their rates this year.
But the surcharge handed to vacant residential landholders is proposed to remain at 80 per cent.
Farmers will continue to gain a 20 per cent discount on their rates to recognise benefits of large holdings and traditionally less demand upon council services.
A 30 per cent surcharge will be added to commercial and industrial rates, a 10 per cent discount will apply to urban living properties, and a 30 per cent surcharge to residential development land.
A pensioner rebate of $50, in addition to the state government rebate, also will continue.
The draft revenue and rating plan released by Baw Baw Shire last week shows council will continue to apply a differential rating system, with vacant land split into two categories as the only change.
Last year, all vacant land - whether residential, commercial or industrial - was subject to the same 80 per cent surcharge.
The decision to differentiate into two categories aims to encourage vast areas of commercial and industrial land to be developed, thus creating jobs for the area’s growing community.
Mayor Annemarie McCabe said council heard from people trying to set up businesses, especially in the Warragul and Drouin townships, but buildings were not available.
Chief executive officer Mark Dupe said there was not enough land generally in these zones and the increased surcharge was one way to address that.
The 140 per cent figure was determined after reviews of charges by similar councils.
An estimated 71 vacant properties will be impacted by the change, contributing just 0.7 per cent of total rates raised.
Just a touch under $63 million is set to be raised in rates revenue this year. When combined with waste and other charges, it represents 58 per cent of council’s annual income.
Residential rates contribute 67.2 per cent of council’s rates income. An estimated 23,958 residential properties will pay $42.3 million, 3.17 per cent more than last year.
A total of 2415 farmers will contribute $10.7 million to the rates pool - $730,000 more than last year, while 1718 commercial and industrial holders will contribute $5.6 million.
Last year there was an estimated 1352 parcels of vacant land. This figure has dropped to 1235 vacant lots, with 1164 residential blocks set to contribute $2.4 million and 71 commercial and industrial blocks to fetch $467,000.
Urban properties have dropped very slightly to 69 properties and will pay $597,000.
A total of 16 residential development properties will pay $755,000 in rates.
The rating plan offers a 100 per cent rebate to 13 sport and community organisations in the shire, at a total value of $52,279. This represents an increase of more than 10 per cent on last year.
The cultural and recreation land rebate applies to bowls clubs at Drouin, Longwarry, Neerim District, Thorpdale, Trafalgar, Trafalgar Park, Warragul and Yarragon, golf clubs at Drouin and Trafalgar, Garfield Wattle Raceway/Drouin Speedway, Moe Field and Game and Angling Club and Warragul Drouin Pistol Club.
Warragul Country Club will receive a 47 per cent rebate on its rates, valued at $29,009.
Council no longer offers a lump sum payment option and has a mandatory instalment rate payment system. Like last year, rate payment is to be split over four instalments, with payments due by the end of September, November, February and May.
It said mandatory instalments relates to improved cash flows and “brings council into closer alignment with virtually every other utility service provider”, the draft revenue and payment plan stated.
The early bird payment draw from last year has been removed. The document noted this decision was “to ensure fairness and equity to all ratepayers”.
The rating plan also includes a financial hardship policy for residents which allows flexible payment arrangements or rate deferral if ratepayers meet the criteria. However, council is currently reviewing this policy.