Ratepayers benefit from $18.1m water unbundling package
The Municipal Association of Victoria (MAV) has applauded the Brumby Government’s announcement of an $18.1 million adjustment package to assist eight councils adversely affected by water unbundling through the loss of rate revenue.
Cr Dick Gross, MAV President said that while local government supported the Our Water Our Future policy to separate water rights from property values to increase their tradability for irrigation farmers, it had a significant knock-on affect for council rates.
“The removal of water rights from property valuations would require councils to either redistribute the rates burden to non-irrigation property owners, who would need to pay more to support the delivery of council infrastructure and services, or to reduce the overall amount of rates they collected.
“The $18.1 million provides the eight councils with the capacity and autonomy to develop longer-term rating strategies in consultation with communities to mitigate the impact on ratepayers and ensure rate revenue is recovered equitably over time.
“Announced at Community Cabinet in Kerang, the package allows councils and ratepayers a smoother transition to the new arrangements, in an administratively simple manner,” he said.
Unbundling of water rights from 1 July 2008 will impact on council rates because it will result in the removal of the value of water from irrigated property values, leading to a shift in the rating burden from irrigated properties to dry land farmers, residential and commercial properties.
A joint MAV-Department of Sustainability and Environment (DSE) project, with input from affected irrigation councils undertook an assessment of the anticipated rating losses of unbundling and identified options for mitigating these consequences.
The local government preferred option was for the $18.1 million adjustment package as announced by the Premier. The eight councils who will receive funding over four years include the municipalities of Campaspe, Gannawarra, Greater Shepparton, Loddon, Mildura, Moira, Swan Hill and Wellington.
Cr Gross said the cooperation between State and local government to resolve this matter meant that councils would be well-placed to minimise rate increases to non-irrigation farmers, which had been estimated to be as high as 15 per cent in some municipalities.
“The unbundling of water titles from property could have unfairly placed the burden on financially strapped and drought-affected communities through significant rate increases for ratepayers who would not benefit from the trading of water rights.
“The Brumby Government’s response is a sensible and fair solution for all ratepayers and we are extremely pleased they listened to local government’s concerns,” he concluded.
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For further information contact MAV President Cr Dick Gross on 0411 446 167, MAV CEO Rob Spence on 0418 132 573 or the MAV Communications Unit on (03) 9667 5521.
Issued: 26/9/2007 |