SRV and land values perfect storm for Clarence rate rise
A PERFECT storm of increased land values and the final instalment of the special rate variation are likely to mean rate increases for most Clarence Valley residents.
Today the Clarence Valley Council will vote on the Draft Rating Structure for 2020/21, which includes an 8 per cent increase from the SRV.
The report to councillors also takes into account strong growth in residential land values across the Clarence Valley Local Government Area since 2018.
It said there has been general increase of 5 per cent, with strong increases in large lot residential values in all areas and coastal towns and villages: Angourie, Brooms Head, Iluka, Maclean, Minnie Water, Townsend, Wooli and Yamba.
Glenreagh has also showed strong increases fuelled by proximity to the Coffs Harbour lifestyle market.
The report also provides councillors with a summary of the new land values issued by Property NSW from July 1, 2019 for all properties within the Clarence Valley LGA.
Clarence Valley land is worth $5.792 billion as of July 1, 2019 up from $4.697 billion in 2016.
Council has been required to use these valuations when levying the rates for the 2020/2021 financial year.
There have been moderate increases in commercial land values in Grafton, Maclean and Iluka. All commercially zoned land remained steady in this period with the exception of Yamba commercial centre which experienced moderate increases.
Overall, commercial land values showed a 12.26 per cent increase since the 2016 valuing year.
Rural land values across the Clarence Valley showed very strong increases since 2016.
The proposed rate structure for 2020/21 based on the 2019/20 rate structure plus the 8 per cent SRV for years 2018/2019, 2019/2020 and 2020/2021 will increase the council's notional rate income by $2,687,162 to its total draft permissible income of $36,276,683.
It will include the changes to base rate amounts:
• Yamba, Maclean and Townsend, Grafton and Junction Hill Residential Categories Base Amount increases from $450 to $490
• All Business Rating Categories Base Amount Increases from $450 to $490
• Residential "Outside Town Areas" and Residential A - "Coastal Villages" minimum increases from $599 to $647.
The report reflected the council's 2013 determination to simplify its base rate structure after the 2004 amalgamation of the region's four general purpose councils and two county councils.
Should councillors endorse the draft Structure as recommended in this report it will become part of the draft revenue policy, which forms part of the draft Operational Plan for 2020/21.
This will go on public exhibition as part of the Integrated Planning and Reporting Framework documentation.