Lengthy debate about Horsham council Budget

While a rate cap of 2.75 per cent under the State Government’s Fair Go Rates system applies, farmers face a sharp increase in rates due to rising property valuations.

As outlined in council’s Trigger of Review of Differentials Policy in the Revenue and Rating Plan 2021-2024, an increase greater than 3.5 per cent between two differential rate categories has triggered rates on farm properties to increases with the value of the property.

In a nutshell, because rural property values ​​have significantly increased, farmer rates will increase.

Cr Ross attempted to make an amendment to the motion – to ensure farm and urban share of the rates remained the same percentage as last year and council investigate moving to a floating differential in the next year – but after much deliberation it was deemed invalid and too much of a change to the Budget.

He said he was concerned the rates had been lowered for residents in urban areas, but not those in rural areas.

“Rates for the rural people have gone up by 12.5 per cent this year, plus the cap, which means there’s effectively another $1 million from the rural people, while effectively the urban one has gone down,” he said.

“We cannot keep on doing this to the rural people. It’s unsustainable, especially with the year we have.

“Member for Wannon Dan Tehan has talked about the drought in the south of the municipality, right through into southern Grampians – the extreme circumstance to keep livestock alive.

“We’re in dire straits, and yet, without any heart or feeling for the rural people, we just keep asking for more money.”

Cr Bowe said he was disappointed with the overall Budget process and the delay associated with the new council system implementation on the budget preparation.

“The differential rates need to be more balanced to avoid placing an unused burden on any single sector,” he said.

“It is critical to ensure transparency and fairness in the rate setting process.

“Our community is already facing significant cost of living increases and these increases in fees, charges and rates cause further financial strain.”
Cr Haenel said she was concerned about ramification for council and each councilor in adopting a Budget that was in breach of the Local Government Act 2020.

“The Local Government Minister has not granted the extension past the deadline of June 30, 2024. It’s as simple as that,” she said.

Past deadline

While council applied to Local Government Minister Melissa Horne for an extension, council chief executive Sunil Bhalla could not answer councillors’ questions about ramifications of the breach, and said he had not received a formal reply from Ms Horne about the extension, but didn’t ‘believe there’s any reason for council to actually not adopt the Budget’.

Cr Flynn said people in urban areas were doing it just as tough as farmers.

“Many people in our community are doing it tough and we as councilors need to make decisions in the best interest of the whole municipal community – not a small cohort, not who we think is being hard done by,” she said.

“For the last three years I keep hearing how well the farmers have done … and now I’m hearing that they’re having a bad year, so all the things we do need to be reinvented and changed to help them.

“There may be parts of the Budget that each of us don’t like for whatever reason, or we may not agree with, but it is our obligation and our responsibility to approve this budget.”

Cr Les Power passed the recommendation for the Budget but said he was concerned about a $200 municipal charge, which he believed was a burden.

“We could go on and on about the Budget and why it should be and why it shouldn’t be put through, but I believe that this budget has been put together, it’s well planned,” he said.

“We’re already over June 30, and to other councilors that are looking on, and to the State Government that’s watching us at the moment, I would say they’ve been thinking we’re a bit of a rabble at the moment, instead of being a successful and prominent council.”

Cr Gulline said the Budget confirmed the council was reliant on state and federal government grants.

“Cost-of-living pressures are impacting on everyone’s budgets and council is no difference,” she said.

Cr Gulline said many people, not just the farmers, were ‘asset rich and cash poor’.

“It is important our community understands that the only personal financial information that council is provided with are the property values ​​as reassessed by the Victorian Valuer General on 1 January each year,” she said.

“As I’ve said so many times before, fair depends on the seat you are sitting on.” The $62-million Budget includes capital works of $26,261 million, made up of $10,430 million in new projects; $14,823 million in renewal; and $1,008 million in upgrades. The capital works program will be funded by $7,889 million in grant funding and $17,841 million in council cash from operations, reserves and investments.

Specific projects funded by the council in the Budget include $1,191-million for Horsham City Oval netball court clubrooms; $492,000 for detailed planning to relocate council’s works depot and a further $900,000; $1.8 million to purchase a new site for the depot; and $1 million for relocation costs. There is also $150,000 allocated to planning and design of a Wimmera Regional Sports Stadium.

McKenzie Creek farmer Neville McIntyre, who was ejected from the council chamber at the meeting, said he planned to refer the council to Ms Horne following the passing of the Budget and farmers may need to look at refusing to pay the council rates.

“This would have to be the worst budget this council has ever thought of. To give the farmers a total $1.25 million rate increase and to give the residential sector a $1 million rate reduction is probably the most ridiculous thing this council has ever done,” he said.

“There’s been a 16.5 per cent rate increase for farmers and 7.5 per cent decrease for residential.”

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