An average residential rate increase of 5.68 per cent – or $82 – is likely across the Berri Barmera district for 2024/25, after the local council cut its rate in the dollar to combat skyrocketing valuations.
Fixed charges for rubbish collection and waste disposal services – which are added to rates notices – are also set to rise in 2024/25 by 4.3 per cent, described by Berri Barmera Council in its draft annual business plan as a “CPI increase”.
Rubbish collection services will increase to $256 for a three-bin collection and $217 for a two-bin collection, while the Community Wastewater Management Charge (CWMS) goes up to $832 for every occupied property.
Residential valuations alone –made by the Adelaide-based Valuer General – across Berri Barmera will rise by a whopping 15.28 per cent, or almost $186 million, in 2024/25.
“With the State Government’s capital valuation growth so high, council has resolved to reduce the rate in the dollar across all property types,” Berri Barmera chief executive officer Tim Pfeiffer told The Murray Pioneer.
“While council is reducing the rate in the dollar, most property types will still experience a small increase in council rates which is broadly in line with inflation.”
The overall rate increase across all rateable properties is around 4.7 per cent, slightly above the current inflation rate of 3.6 per cent, but well below the total valuation increase of 13.82 per cent.
The soaring valuations meant council needed to reduce its rate in the dollar to keep rate rises down, with a blanket 8 per cent cut employed across all land use codes.
Mr Pfeiffer said despite reducing the rate in the dollar, other savings would help rein in council spending in 2024/25.
“Council was initially projecting an operating deficit of $669,000,” he said.
“(However), instead of further raising rates, this has been addressed through making savings, which has reduced the projected deficit to $216,000.”
Council has sent its draft annual business plan out for public consultation, after the document was discussed at last week’s monthly meeting.
“A key focus of Berri Barmera Council in 2024/25 will be accelerating flood recovery works, whilst delivering essential capital works and providing high-quality services for its residents and ratepayers,” Mr Pfeiffer said.
“Council is currently undertaking a range of advocacy actions in relation to the wine industry and has also resolved to increase the value of the rate remission for wine grape-growing properties in 2024/25, with clearer eligibility criteria.”
General rates raised in 2024/25 are estimated to be $10.036 million, or just over 73 per cent of council’s operating revenue.
In its draft document, council says its plan was influenced by a long list of factors, including the downturn in the wine grape sector, the additional staffing needed to comply with increased statutory requirements, increased regulatory standards such as workplace safety, and the higher cost of goods and services like electricity, insurance, waste management and other operating expenses.
It also notes ongoing economic effects of the 2022/23 River Murray flood.
Employee costs are proposed to increase by $610,000 in 2024/25 to a total of $6.428 million.
The draft plan also outlines details of projects to be delivered in the coming financial year, including those that will carry over to 2025/26 and beyond.
The plan is out for public consultation for 21 days from today.
This article appeared in the Murray Pioneer, 5 June 2024.
