EQUITABLE distribution of the rate burden across all levels of the community is the rationale behind the budget formally adopted by Gannawarra Shire Council.
Council considers that equity will be achieved through its differential rates structure.
Cr Mark Arians commended the fairness of the budget.
“It means that we can operate in a sustainable manner while continuing to grow,” he said.
Despite concerns expressed by the Victorian Farmers Federation that many councils, including Gannawarra, were placing an unfair burden on farmers, council received no submissions after the public consultation process.
The VFF calculated that Gannawarra farmers faced an average rates increase of 3.53 per cent, compared with an average of 1.42 per cent for residential properties under council’s differential rates structure.
Shire corporate services director, Tom O’Reilly told council that farming sector increases beyond the average have been attributed to increases in valuation of properties, however, the valuer reviewed the pending Capital Improved Values of working dairy farms following the substantial decrease in milk prices in the dairy sector which impacted on dairy property valuations.
The substantial decrease in milk prices in the dairy sector, which impacted on dairy property valuations, had prompted an adjustment in the Capital Improvement Value in that category from 0.6206 per cent to 0.6443 per cent to incorporate the final working dairy farm valuations as provided by the valuers.
The differential rate is determined by multiplying the Capital Improved Value of the rateable land categorised in 7.2 by the listed percentage:
• Dryland farm 0.5143 per cent;
• Irrigation district farm 0.6443 per cent;
• Commercial/industrial 0.6738 per cent;
• Cultural and recreational 0.3191 per cent.
Mr O’Reilly said that the objectives of the differential rate is to provide equitable distribution of the rate burden across all levels of the community.
In moving the adoption of the 2016/2017 budget, Cr Arians said that it had been discussed and considered extensively over recent months in consultation with the community, it had complied with the Victorian Government’s 2.5 per cent increase cap and provided sustainability while allowing growth.
Council proposed to raise $11,876,434 from general rates and the annual service charge, which is calculated as follows:
. General rate $9,512,067;
. Municipal charge $627,700;
. Recreation and cultural land $11,405;
. Waste and recyclables collection $1,725,262.
