HORSHAM Rural City Council’s rates are once again in the spotlight.
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Councillors were due to discuss the council’s Rating Strategy Review at their latest meeting on Tuesday night. An independent committee of ratepayers and advisers created the review.
Horsham council rates rose to the capped increase of 2.25 per cent, on average, in 2018-19. However a breakdown of the rates meant residential rates decreased by 0.6 per cent, while farm rates increased by 11.8 per cent.
At the council’s August meeting, councillors moved a motion to allow the formation of a Rates Strategy Advisory Committee to create the review.
The committee’s main purpose was to advise the council in identifying and recommending principles for formulating its rates strategy and policy.
It was made up of nine independent residents, representing a broad range of rate paying sectors across the municipality including residential, commercial and farming.
Victorian Grants Commission chairman John Watson was the committee’s chairman, while independent financial consultant Mark Davies was appointed to guide discussion.
The committee met in October and November, and presented its report to councillors on December 13.
In the report, the committee proposed a further farm rate differential discount of 13 per cent. This would decrease the differential from 80 per cent to 67 per cent of the general rate.
The committee also proposed a discount for commercial and industrial differentials of five per cent. It would make the differential for those sectors 95 per cent of the general rate.
A flat municipal charge was also proposed. This would reduce the fixed dollar municipal charge per property from $287 to $200.
Rebates for pensioners were also suggested, with the council recommended to give a $30 per property rebate for all eligible ratepayers.
This would be in addition to the state-funded pensioner rebate that already exists. The introduction of a $30 rebate for eligible pensioner assessments was estimated to cost $53,000.
The committee also recommended a differential review trigger. The trigger would have a margin of error of five per cent relative to the valuation movement of each sector.
The strategy was undertaken in conjunction with the development of the council Budget. The operations of running the committee cost $75,000, which was met through the 2018-19 Budget.
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