Rates to rise: A one per cent rate rise is contained in Greater Shepparton City Council’s 2022-23 draft budget, which will go before councillors at the April meeting.
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Rodney Braithwaite
Greater Shepparton City Council will consider a draft budget with a one per cent rate raise when it meets on Tuesday, April 19.
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While the complete 2022-23 draft budget was not included as an attachment to the April meeting agenda, which is the usual practice, the final agenda did include the key financial data.
The proposed one per cent rate rise is lower than the rate cap of 1.75 per cent that applies to Victorian councils.
The draft budget will be made available for public submissions from April 22 to May 26, with any submitters who want to be heard in-person scheduled for May 31.
The draft budget forecasts revenue from rates and charges of $86.9 million.
Forecast actual revenue will increase from $157.38 million to $183.32 million, an additional $25.94 million, driven in part by a recovery in user fees and charges from council facilities post COVID-19.
However, the officers’ report notes that growth in revenue from user fees remains susceptible to any future COVID-related restrictions and closures should they occur.
Total expenses will increase by $6.61 million to $148.68 million due to expected rises in employee costs and non-recurrent materials and services.
While the rate rise is being held at one per cent, there will be a 1.52 per cent increase in kerbside waste collection charges levied on all properties that receive the services.
Kerbside collection charges are not part of the Victorian Government’s Fair Go Rates System (rate cap) and neither are supplementary rates accrued from new properties or improvements, which are expected to raise a further $754,000.
Another $150,000 is budgeted for in penalty interest.
There is no plan to change the rating differentials in the draft budget, which is the percentage of the base rate that each property category pays.
Despite agitation before the last council election over disproportionate rating, commercial and industrial properties will still be levied at 205 per cent of the rate that is struck.
The draft budget proposes a $34.64 million accounting surplus and a capital works budget of $49.77 million.
The works program includes $20.44 million for renewal works and $24.06 million for upgrade works across the municipality but is significantly less than the 2021-22 budget of $71.19 million, which include major projects such as the Maude St Mall and Cosgrove landfill.
There are no new borrowings set out in the draft budget.
Draft property valuation data suggests an average increase across the municipality of 22 per cent, meaning the rate per one dollar of capital improved value will be adjusted to achieve the revenue target.
Individual property valuation movements will not be advised until the 2022-23 annual rates notices for each property are distributed.
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