Council
16 July, 2024
Farm-friendly rate relief
Somerset property owners will pay 4.1 per cent more for general rates this year, while farmers have been spared excessive hikes, Mayor Jason Wendt says.
The $96m budget revealed last week noted that land values had increased an average of 51.6 per cent this year.
Despite this, minimum general rates will only increase by 4.1 per cent, or $2.28 per week, the budget stated.
Acknowledging the additional rates burden for farm owners who received land valuations higher than the average for their categories, the new budget will see over 70 per cent of farm owners paying less than 10 per cent more, while 16 per cent of farm properties will receive a rate reduction.
Council has also increased the number of farm rating categories from three to nine and reduced the general rate as a percentage of official state land valuation by between 25 and 49 per cent.
Cr Wendt said it had been a tough budget, given the rising costs of labour, materials, insurance, energy, and water, combined with record land valuations, contributing to necessary rate increases.
“Despite the challenging economic environment, the council has worked hard to manage impacts for Somerset ratepayers by containing operating costs to ensure long-term affordability and sustainability,” Cr Wendt said.
“Even with the valuations increase for farm owners, the cost ($28m) to maintain and build rural roads across Somerset in the FY25 exceeds the total revenue raised from farming rates ($7.7m), highlighting the challenges the council has faced in delivering a fair and equitable budget while funding essential services.”
Cr Wendt notes the total percentage rate increase for any given property will depend on the rating category, valuation increase, and other factors.
Despite the financial challenges posed by rising costs, the budget is still investing $53m in infrastructure through a capital works programme, with more than 30 projects planned this year.
Ensuring ratepayers aren’t solely funding the cost of infrastructure investments, the budget has been boosted by an anticipated revenue of $32m from government grants and subsidies, along with $6.4m from other revenue sources.
Another aspect receiving funding, aimed at addressing cost-of-living challenges, is freezing dog registrations for three years, with residents expected to save more than $200,000 over the next two years.
Additionally, a 15 per cent prompt payment discount for rates provides further financial relief.
The council also expects to maintain around 60 per cent of total rates and charges revenue within the local community by supporting local businesses through employing and buying locally.
“A further $329,000 investment in local event sponsorship and assistance programmes will help bring the community together and boost visitation and economic activity,” Cr Wendt said.
Acknowledging his team, Mayor Wendt extended his appreciation to his fellow councillors for their dedicated eff orts in delivering the budget.
“Crafting a local government budget is always challenging, but doing so shortly after assuming off ice as a first-time councillor is a significant endeavour and I’m proud of what we have been able to achieve,” he said.
“I would also like to acknowledge the senior management team, in particular the Director of Finance and the Finance Team, for their efforts in constructing the budget over many months, and our CEO for his support, leadership, and oversight.
“Together we move forward for a stronger Somerset, one that fosters improved communication and engagement with the community, working towards a vibrant, well-planned, prosperous, and unified future for all residents and our region.”
For more information about the budget, visit somerset.qld.gov.au/ budget.
