Ararat Rural City Council voted in favour of carrying the recommendations to the Council regarding the Draft Budget 2022/2023 at the June 28 Council Meeting.
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It was recommended that Council, having considered the draft Budget 2022/23 and having distributed the budget for community consultation adopt the Budget 2022/23, comprising the 2022/23 financial year plus the subsequent three financial years 2023/24 to 2025/26.
Council's 2022/23 budget is taking more of a conservative approach to capital works than in previous budgets. This is in response to the volatile nature of pricing in the civil construction and building sectors.
Council believes that it is important to minimise financial risk around higher-value projects.
The council continues to invest in capital works with a healthy investment of $8.710 million during 2022/2023.
The upcoming budget has a 0.0 per cent increase to rates in 2022/2023 to ensure that the community receives a dividend for improved organisational efficiency and cost savings while minimising the impacts of rate rises on the community during the COVID-19 event.
Ararat mayor, Cr Jo Armstrong said there were "many positive attributes" to take out of the budget.
"Taking conservative, cautious but still very productive and effective approach speaks to Councils' renewed efficiency as an organisation," she said.
"We have achieved some terrific projects already over the past couple of years and we are still able to work towards the council plan 2021-25.
I think we should be very proud of being able to strategically lead an organisation that can deliver that live and work here."
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Ararat deputy mayor, Cr Bob Sanders said it was a "magnificent effort" by the Ararat Council to have no rate increase for five years running.
"If people would like to compare that to some of our neighbours they might get a little bit of a freight at how good we are doing," he said.
"I am very encouraged by our budget and happy for it to go ahead."
Cr Peter Beales said most rural councils "lack the courage" the Ararat Council has shown.
"This budget has been constructed based on the direction of the Council and reflects our common goals which include financial stability, community services and use of infrastructure," he said.
Reflecting on the budget, Cr Rob Armstrong said he was "really excited" about what Council should be able to achieve in the upcoming financial year.
"We are probably one of the only councils in Victoria who are not borrowing money to do work," he said.
"We are running a council as a business and it has to run its own money, it has to look after itself and it doesn't have to run to the bank to get something done.
We are very conservative this year, we don't have the money which is smart business, now our council is running as a business which is how it should be."
Cr Gwenda Allgood said it was "not quite right" to say there was no rate rise in the 2022/23 budget.
"I asked for a breakdown of properties out of the 21 I was given, the results of 11 were down and the rest were up," she explained.
"How can it be possible that we are saying we are not having a rate rise because some people are going to get a rate rise because of the values of the properties."
Ararat mayor, Cr Armstrong concurred with Cr Allgood's comments, however, blamed the broken system for the rate increase selected residents would receive.
"We do all acknowledge that this is a broken rating system that we are living with," she said.
"We do all acknowledge a 0% rate budget increase does not mean no rate rise for all ratepayers we understand."
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A general residential rate of 0.3960 cents in the dollar of the Capital Improved Value was declared from July 1 2022 to June 30 2023.
A commercial/industrial differential rate of 0.5702 cents in the dollar of the Capital Improved Value was declared from July 1 2022 to June 30 2023.
Council also declared a farm differential rate of 0.1426 cents in the dollar of the Capital Improved Value from July 1 2022 to June 30 2023.
Council has also adopted a municipal charge of $96 per rateable assessment for the period of July 1 2022 to June 30 2023.
Annual Service Charge be declared for the period 1 July 2022 to 30 June 2023 on properties where the service is provided, as follows:
- Kerbside collection - 4 bin system $462
- Kerbside collection - 3 bin system $410
- Water Supply (Mininera, Rossbridge, Tatyoon and Travellers Rest $456 g. Special Charge is declared for the period July 1 2022 to June 30, 2023, on all properties in the Bunnugal Drainage area, for maintenance works within the drainage area.
At the meeting Council declared $17,120,655 was declared as the amount which Council intends to raise by General Rates, Municipal Charge, Annual Service Charges and Special Charges which is calculated below:
General Rates
- Residential $7,014,600
- Commercial $753,400
- Industrial $207,400
- Farm $6,018,800
- Supplementary Rates $100,000
- Municipal Charge $626,016
Annual Service Charges
- Kerbside Collection Charges $2,391,600
- Water Supply $6,272
Special Charges
- Bunnugal Drainage $2,567
TOTAL $17,120,655
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