RCoW Rates Ready Reckoner

The 2005/2006 Draft Budget Report document of the Rural City of Wangaratta and the associated publicity puts forward many figures and invites scrutiny by the public. For most of us the significant figure will be the amount against the Total Rates Due line in the statement we can expect to receive from council in August. Will it show a 4.5% increase or a 2.5% increase or just what?

To answer that question ratepayers need to examine their individual situations using the published figures. Some of the charges are fixed charges and one is variable depending on the valuation of the property.

As an example consider the ratepayer who pays rates on their residential property and whose property is of area less than 0.3 hectare. This is the largest group of ratepayers for the rural city. Further consider that the valuation as determined at the beginning of 2004 was $200,000 and no property improvements have been made since then. Such a property is in the General Type of property for rating.

The proposed rate, as opposed to charges, on such a property is based on valuation and is proposed for 2005/2006 to be 0.4074 cents in the dollar (0.3974 in 2004/2005) on Capital Improved Value. This rate in the dollar is an increase of 2.5%.

The rate notice contains other charges and for most people these are Municipal Charge, Recycling Charge and Garbage Charge. To understand the total effect all need to be considered for this example.

Rate on valuation 2005/2006 - $814.80 (200,000 times 0.4074 cents), was $794.80 in 2004/5. – Percentage increase 2.5%.

Municipal Charge 2005/2006 - $126.50 - was $121 in 2004/5. - Percentage increase 4.5%.

Recycling Charge 2005/2006 - $59.75 was $48.40 in 2004/5. – Percentage increase 23.5%.

Garbage Charge small bin 2005/2006 - $121.20 was $92.50 in 2004/5. – Percentage increase 31%.

Now adding these sample figures. For 2005/2006 the total is $1122.25, was $1056.70 in 2004/2005. – Percentage increase 6.2%.

While actual dollars and not percentages are the things that matter, the lower the valuation the greater the total percentage increase and vice versa.

The much touted 4.5% increase may apply to some properties and doubtless is an average. Council may be interested in the average, but as the payers of the rates we are concerned with our own situations.

Residents should look out their 2004 August rate notice and then use the published figures to calculate their own situation. What a pity that samples are not given or that there is not some sort of ready reckoner on the council website which allows people to calculate their own rates based on the currently circulating draft budget document?

Jim Lewis

Killawarra