Brimbank ratepayers will be slugged an average of 6.65 per cent more in 2014-15, with similar rates increases forecast for coming years.
The council will collect $131.8 million from ratepayers next financial year after lifting rates by 6.8 per cent in 2013-14.
The pain is set to continue, with the council’s draft rating strategy proposing increases of 6 per cent in 2015-16, 6 per cent in 2016-17 and 5 per cent every year from 2017-18 to 2023-24.
Following the release of the council’s proposed budget last Tuesday night, corporate services director Doris Cunningham said a ratepayer with a residential property valued at $383,000 could expect a $1408 rates bill in 2014-15, including municipal and environmental charges.
“Council has made every effort to keep Brimbank property rates, user fees and services charges and the municipal charge as low as possible,” Ms Cunningham said.
Chairman John Watson said some ratepayers may notice an increase or decrease in their rates bill, after a revaluation was carried out this year.
The revaluation is a two-yearly process where contractors assess a percentage of properties in the municipality, in person and using recent sales data.
The latest rates increase comes after Star Weekly revealed that about one in seven Brimbank residents are behind on this year’s bill.
The council is owed $7.9 million in rates arrears, with about 11,000 property owners – 14.5 per cent of all ratepayers in the municipality – having an arrears balance for 2013-14.
The council has taken legal action against 4.7 per cent of people in rates arrears, while a further 15.25 per cent have a repayment arrangement.
Federation of Community Legal Centres senior policy adviser Lucy Larkins said councils needed to be sensitive to residents experiencing financial hardship, particularly when increasing rates.
In 2012, a FCLC study found that many councils were too quick to sue for rates arrears without providing adequate payment plans or other strategies to recover unpaid rates.
“Collection of rates is crucial to the effective operation of local government and it’s legitimate for councils to collect rates to pay for essential community services,” Ms Larkins said.
“However, many residents experience genuine difficulty paying rates.
“Where rates are increased, councils need to be sensitive to people experiencing financial hardship and should have proper systems in place to identify and accommodate people experiencing hardship.
“Resorting to court action to recover rates can add significant legal costs to debt and is less effective than alternative and fairer approaches that recognise hardship.”
The draft budget is on display until June 18 and can be viewed at council customer service centres, libraries and online at www.brimbank.vic.gov.au.
