Ararat considers budget and rating

People have until June 8 to make written submissions in response to Ararat Rural City Council’s draft budget, council plan and rating strategy.

The council has updated its rating strategy, the subject of considerable municipal upheaval and debate, as a draft and placed it on public exhibition for comment.

The council voted on the rating plan at a special meeting and resolved to prepare a budget for the approaching new financial year.

In reaching the resolution, the council considered the outcome of a Rating Strategy Advisory Group, RSAG, and Citizen Jury process, as well as recommendations from each group.

The council voted in favour of a proposal that included a nil rate rise for 2018-19.

Chief executive Allan Bawden said the council also considered rating-strategy modelling, based on the options generated by RSAG and the jury.

“The RSAG group put forward four options for the jury to consider. The jury built on the work of the Rating Strategy Advisory Group in arriving at its recommendations,” he said.

Mr Bawden said since the jury weekend, which involved a cross-section of people from the municipality, the council had also received unaudited 2018 valuations from the Valuer-general.

“This indicates movements in valuations across land classes of residential, four percent, commercial, 10 percent, industrial, nine percent and farming, 25 percent during the past two years,” he said.

“The rating strategy proposed for consideration by the council reflects the work of RSAG and the jury with some variations.

“The major differences are around the level of the municipal charge, rebates and some changes to the differential rates to reflect the new valuation figures.”

If the council accepts a draft budget during a special meeting on June 26, the following changes will occur:

• The total municipal rate revenue will not increase in the 2018-2019 budget.

• To ensure stability and the equitable imposition of rates, the following differential percentages will apply to the 2018-19, 2019-20 and 2020-21 rating years: General 100 percent; commercial-industrial 125 percent of general; farm 55 percent of general.

The citizen jury voted 17-4 for: Commercial-industrial 125 percent; farming 45 percent; municipal charge, 10 percent and for the council to consider a ‘pie’ approach to the rating split in the future. Other proposals are that – • Commercial land classification and the industrial land classification be treated as the commercial-industrial land classification.

• The cost of kerbside recycling bin collections increase by $35 a bin to offset the increased cost of recycling following China’s recent ban on accepting these materials from Australia.

• The cost of kerbside waste collections and various other fees and charges increase to reflect CPI increases, statutory price increases and the council’s pricing policy to recover costs via userpays principles, where appropriate.

• The council will no longer provide a rebate for eligible concession cardholders. It was $92 in 2017-18.

• Starting with the 2019-2020 budget, farmers who wish to receive the farm rate will need to supply the council with a statutory declaration to certify the Australian Taxation Office currently recognises their primary-producer status.

This proposal allows sufficient time for farmers to submit their declarations, and if no declaration is provided, then the land will revert to the general land classification.

People who want to make a submission on a proposal in the budget, council plan or rating strategy must do so in writing, addressed to chief executive officer, Ararat Rural City Council, PO Box 246, Ararat 3377.

Anyone wishing to speak about his or her written submission can do so at the special council meeting on June 12.

Draft papers are available on the council’s website, www.ararat.vic.gov. au.