Budget adopted with floating differential rating system
Published on 28 June 2022
Council adopted the Budget 2022-23 at yesterday’s Council Meeting held in St Arnaud. The budget was developed in compliance with the Victorian Government’s Fair Go Rates system and adheres to the government’s 1.75 per cent cap on average rate rises.
The $36.4 million budget which is informed by the Financial Plan and the Council Plan 2021-25 is being funded by $19.4 million in rates and charges and $17 million in grants and contributions.
$12.4 million of the budget is being directed to enhancing lifestyle and community services for youth, the indigenous community, transport, safety and natural and cultural environment protection. Spending for these services includes:
- $1.6 million on childrens services
- $1.4 million on community care (including aged & disability services)
- $1.1 million on leisure services
- $488,000 on Maternal and Child Health.
- $417,000 on library services
- $75,000 towards outcomes identified in the Walkers Lake Management Plan.
Other expenditure highlights in the budget include:
- further improvements to the sporting precincts at North Park and Lord Nelson Park
- the refurbishment of the Stawell Library
- clubroom upgrades at Great Western Recreation Reserve and Central Park.
$6.7 million is being allocated to shire wide road upgrades with a particular focus on B Double routes however these works continue to be dependent on government funding.
A key change in the budget is the introduction of a floating differential rating system outlined in the Rating and Revenue Plan 2021-24.
Northern Grampians Shire Council Mayor Cr Tony Driscoll said this system will be implemented across a four-year period and should see a fairer and more equitable spread of the rates burden on the community.
“Council cannot unfortunately control what has been happening to farm and residential valuations as these are set by the Victorian Government’s Valuer General,” maintained Cr Driscoll.
“We can however abide by the government’s rate cap by applying a floating differential model that will reduce the impact of year on year rates variations affected by spikes in property values.
“We understand that the farming sector would like us to return to a historical average of 32.5 per cent for the farm category but this needs to be implemented in a staged way otherwise other categories of rate payers will be adversely affected.”
The floating differential model will see the amount of rates paid by the farm category reduced to 36.2 per cent as opposed to 40.9 per cent suggested by financial modelling had Council not adopted it.
“Budgets are always balancing acts which require us to adhere to government legislation and manage the expectations of our ratepayers and the services our community expects”, said Cr Driscoll.
“This budget is taking a long term view and aims to be as fair and equitable as possible while still allowing us to meet our goals and realise some long-awaited projects.”
The Budget and the Revenue and Rating Plan are both available for download from www.ngshire.vic.gov.au/CouncilPublications or via customer service upon request by calling 03 5358 8700.