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11/06/2008 10:40:00 AM
A PROPOSED rate increase of eight per cent–the same as last year–is up for the Augusta-Margaret River Shire’s Council’s consideration at tonight’s ordinary meeting.

Shire staff have offered three options, the first being a Gross Rental Value increase of eight per cent with an Unimproved Values rate of eight per cent; levied from the 2007/08 rate billing.

The second is that GRV and UV have an eight per cent increase with the UV increase on rate in the dollar and minimum payment.

The third is a six per cent increase for both GRV and UV, with the UV rate levied from the 2007/08 rate billing.

Rateable properties in the shire rose by 1.5 per cent in 2000-01 and had increased to six per cent in 2007-8.

The number of properties has risen from 5441 in 1998/99 to 8193 in 2008/09.

Rates made up 54 per cent of the shire’s revenue in the past financial year.

In a report to the shire, staff noted the region’s rapid growth, the need for road repairs and maintenance, increasing employee costs, and the estimated average cost of construction materials and labour (more than eight per cent).

“Taking into consideration the above factors, and the desirability of keeping the average rate increases within affordable limits, an increase in the rate in the dollar and Minimum Payments of eight per cent is considered reasonable,” shire staff said.

As well, this year’s UV properties have increased in value by an average 33 per cent.

“Council is attempting to minimise the impact of the revaluation of the UV properties,” staff said.

“With (the first option) some UV properties will be levied rates that are lower than what they were levied in 2007/08.

“These levels of increases are considered necessary to ensure the shire is economically sustainable and, if continued over a number of years, will assist the shire to ‘catch up’ on asset management and plant replacement activities.”

Last year, the council chose an eight per cent increase in an effort to run a “tight ship”.

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