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ARARAT Rural City Council has been ordered to take on the costs associated with the state government’s inquiry into its proposed rating strategy.
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The Commission of inquiry into governance at Ararat Rural City and a proposal to abolish differential rates tabled its report to parliament last week.
“The Commission orders pursuant to section 214 (3) of the Local Government Act 1989 that Ararat Rural City Council pay all of the costs of the Commission of Inquiry,” the report stated.
Ararat mayor Paul Hooper said the council’s budget would take a hit.
“The commission has decided that council pick up the cost of the inquiry and I don’t know what that is, but it won’t be cheap,” he said.
Local Government Minister Natalie Hutchins announced the inquiry on June 24, and since then three commissioners, including one Queen’s Counsel, have held public and private hearings in Ararat.
The inquiry was called in response to the proposal to abolish rates discounts for farmers in Ararat Rural City and reduce rates for residential, commercial and industrial properties.
A spokeswoman for Ms Hutchins said there was currently no available estimate for how much Ararat Rural City would be billed for the inquiry.
The report made a number of recommendations, including that the minister appoint a monitor to the council for two years.
“It’s reasonably damning. Personally, I would be accepting the recommendations of the report and implementing them where I could,” Cr Hooper said.
“A response is due within 28 days and we’ll start work on that.”
Cr Hooper said the council will proceed with their ordinary council meeting on Tuesday and the motion to reconsider the rating strategy will likely be heard.
“The minister has directed that the existing rating strategy that was adopted for the 2016-17 year becomes the rating strategy for the 2017-18 year.
“So, the status quo remains in place.”
Cr Hooper did not expect a budget hit from keeping the previous strategy.
“The amount of money that is raised for council will be the same, it’s from where the money is derived from, that’s what the rating strategy does.
“The budget is sitting there with a two per cent rates rise, which is what the state government cap is set at.”
Staff have recommended to councillors that they adopt an amended rating strategy and accept the minister’s recommendations.