At an extraordinary meeting of Palerang Council in Bungendore on July 11th the new rates model for this financial year was adopted. The Council had been waiting to hear whether the Minister would approve the special variation in rates applied for and found out on Monday that it had a 9.9% rise over the notional 2005/2006 yield approved (which includes the rate cap increase of 3.6%). Cr MacLachlan had said after meeting that he believed all councillors would have resigned had the rate rise not been imposed. "We're really strapped for cash," Cr MacLachlan said.
Facing a serious financial crisis, Council had deliberated over the rates for months, and consulted a Rates Reference Group, made up of community members, to find a solution to applying the rates equitably across the Shire.
Rating is based on the twin principles of 'benefit' and 'ability to pay'. There was little consensus among the Councillors as to which model would best serve these principles, but eventually Model B was adopted (CR Brandsdon and Gardiner against, Marjeson absent).
Model B uses only four categories (Farmland, Mining, Business and Residential) and has a high base rate of 49%. It was argued that this high base rate would minimise the effect of the great disparities in valuations across the Shire.
There were a number of speakers from the gallery at the meeting.
At the last minute an extra rates model was put on the table by Wamboin Resident Helen Montesin. "Model B had inequities. Extra Categories should have been applied as required by the Minister. None of the models fully address the inequities of 05/06. No rate payers should be paying less than they did last year," she said. Mrs Morteson was also supported by the Bywong Community Association.
Greg Nye from Bungendore reiterate what she said. "All the options build on inequities" he said. There was "no representation from the villages on the Rate Reference Group." The Mayor replied that everyone had an opportunity to be represented on it. Mr Nye continued that "until there is a higher rating base the Council is not viable. The number of rateable properties need to increase to be solve the problem."
Mr Kerry Kiernan of Captains Flat said that "80% of Palerang communities are being asked to pay rates not compliant with statutory requirements" as the ad valorum can exceed the base rate. He claimed it is "not permitted under the Act."
"Why do Bungendore residents get 3% rate rise while Braidwood gets a 42% rate rise?" He called on the flat rate to be implemented.
The General Manager countered that the 49% base rate was set as it can be no higher than 50%. "He's saying Model B is not legal and I'm saying it is," said Mr Bascomb.
Mr Keith Frances (Wamboin) said that the "Management Plan needs more financial detail in it. It is not good enough that Council just doesn't receive financial information. You must know what past performance is, whether different or not."
Walter Raynolds moved Option B and was seconded by Cr Horan.
Cr Horan stated that "Tallaganda was a high rating Council. Mr Nye is right in some respects. Council approved an 120 lot subdivision (but) we cannot magically improve the rates base. By making the base rate so high we have shifted the burden to the lower valuations; pushed the burden onto those people who have the least ability to pay."
Cr Brandsdon said that he though the report was a very biased report. "You can't tell me Tallaganda could ever describe itself as a high rating Council, but I know I'm talking to deaf ears."
Cr Moore responded that she was listening and that "With respect to the principles of benefit and ability to pay, I couldn't support C D or E on equity."
Expressing the frustration felt by some Councillors, Cr Harrex said that "We've flattened it out and raised the base rate. It would be manipulating the rates to put in extra categories. I was hoping that if we didn't bring more categories in then the Minister would have sacked us, then we could have all gone home and had a nice life. We'd love more rate payers if we could. When the Valuer General comes in the East the valuations will rise."
Cr Gardiner said that "There isn't a perfect Model. Our job is to manipulate the Model. We won't reach consensus but need to look for the common good." He added that "I don't reckon Council is broken, we can fix it."
Cr Raynolds said that is was "fair to say that the Minister knows about as much about rates as my dogs." It's "time to forget the past, forget about Tallaganda and Yarrowlumla, East and West and set the rate against the valuations. This is probably the highest base rate in NSW."
Cr Gardiner was against the motion, and foreshadowed a contrary motion to adopt Model C. "The rates debate is more than ad valorum"
Cr Brandsdon supported him saying that "After knocking back some other Councils, the Minister has approved the Special Variation in rates so we can 'decrease' level of services."
Cr Moore said "I went for the maximum base rate so as to minimise the impact of the ad valorum. The East will be slugged when the valuations are redone next time. I hope that we on the Council can work together to get Federal Government funding for Local Government."
The General Manager said that we would need 535 new properties a year to get the rates base up.
While the average Braidwood village rate was $271 in 05/06, this year under Model B they would be $383, while Model C was calculated at $500, Model D $611, and Model E $622.
In Bungendore village the 05/06 rate charged of $591, will rise to $$612 under Model B, while Model C was calculated at $577, Model D at $611 and Model E at $636.
Most of the conflict surrounded the Rural Residential categories where in the East with a average valuation of $84,970, the 05/06 rate was $408, and Model B will charge $504. (Model C $494, Model D $611, Model E $626)
In the Rural Residential West Category with an average valuation of $205,263, Model the 05/06 rate was $760, Model B will charge $790. (Model C $774, Model D $611, Model E $638)
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