November 26, 2014
Almost one in 10 South Burnett ratepayers are now late with their rates payments, councillors heard today.
Delivering the monthly financial reports at Council’s November meeting, Finance portfolio chair Cr Keith Campbell said Council currently had 2.7 months of working cash on hand.
He noted that outstanding rates balances prior to the November quarterly rates notices being issued were 9.5 per cent.
This was slightly higher than the historical average of 8 per cent.
Cr Barry Green said he thought 2.7 months of working cash reserves was not enough.
He also reminded fellow Councillors than an arrears rate of 9.5 per cent was only a hairsbreadth away from 10 per cent.
“That means that 1 in 10 ratepayers are struggling with their rates bills right now,” Cr Green said.
“I think we should seriously look at doing away with quarterly rates and either go back to yearly or half-yearly notices with an extended discount period.
“The trouble with quarterly rates is that they’re always in your face – you get rid of one and there’s another one there a few weeks later.”
Mayor Wayne Kratzmann said he heard what Cr Green was saying.
“To be fair, this issue has been flagged by the community and I agree with you,” Mayor Kratzmann said.
Cr Campbell said quarterly rates had been introduced with the best of intentions but had proven to be less than ideal in practice.
He urged anyone who was having difficulty paying their rates to contact Council and make a repayment arrangement.
“Once rates get to three years in arrears another level of action has to be taken,” he said.
Cr Campbell said there were 96 properties in that condition right now, and their total outstanding rates were close to $1 million.
He warned that in February next year Council would have no other option but to begin proceedings to sell those properties if their owners had taken no action to catch up on their rates arrears.
In February this year the Council put 24 properties, with a combined value of $2.8 million, on the market to recover $201,000 in unpaid rates.
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Later in the meeting, Councillors voted unanimously to extend the discount period on November’s quarterly rates notices from Friday, December 5 to Tuesday, December 16.
The decision was prompted by community feedback that most people preferred a date in the second week of December.
Maybe the Sth Burnett Council should stop being a revenue agent for the State Government and refuse to be part of the State Emergency Levy money grab.
Remove the $200 road levy (more alleged disaster relief funding).
Stop wasting rates money on certain projects that can be delayed or canned totally.
Stop giving millions of dollars discount to private clubs that are financially sustainable and not a 100% charity organisation.
Explain the $6 million “miscellaneous fund” on their books. (Even Toowoomba Council only usually carries a few thousand)
Explain the sudden departure of the CEO fully and report how much compensation will be paid for the remaining two years of his five year contract.
Stop wasting ratepayers’ funds on useless trips. Plenty to pick from there ranging from the USA, Holland, Sydney to Caboolture and many many more.
Fully expose costs of legal representation from the Planning and Environment Court cases that ratepayers have funded to help Council fight for their agenda.
Voted against the continual ‘awarded’ pay rises that we keep hearing the same lame excuses about.
One of the next steps is to start legal action to recoup lost revenue from unpaid rates. What an ironic procedure, taking probably the only asset someone may have regardless of past support and possible future support when times/government change.
I will continue to refuse to pay the money grab by the State Govt and $200 road levy. I pay my rates due (under duress), environmental levy, rural fire levy etc but that is all.
The list goes on… but you get the picture. There are mass savings to be had instead of inflicting financial pain on the South Burnett residents.
I watched this happen years ago in Ipswich. Quarterly rate notices came in and the rates increased out of all proportion. The amalgamation of councils was supposed to increase efficiencies it appears that that hasn’t happened. Of course, the bureaucratic rubbish that has infiltrated so many organisations is a lot of the problem. Common sense doesn’t or isn’t allowed any more.
With almost one in ten South Burnett residents struggling to pay rates, a move back to half-yearly or yearly rates will not relieve rate stress. Councillors, however, may see this as an advantage to themselves, given the current state of discontent within the shire. For ratepayers, whichever system is adopted budgeting for rates will continue to be a challenging affair. With 96 properties facing imminent recovery action, the total number of in arrears rateable property has not been disclosed. The 9.5% stated by council may well be as high as 30% given the financial situation facing many rural landholders, retirees, unemployment and under-employment in the shire.
Morgan polling: Queensland real unemployment is now 10.9% (up 0.9% since August & September 2014) and under-employment is 9.3% (up 1%). This means total Queensland unemployment & under-employment is 20.2% (up 1.9%). [The South Burnett will likely exceed the Queensland average in unemployment and more so in under-employment]
The Council said awhile ago that it issues about 18,000 rates notices, so 9.5% in arrears would be about 1710. But since some people own multiple properties, the number of individuals in arrears is probably a bit lower.
And since the historical average at this time of year is 8% according to this story (ie 1440), the real increase is 270 people or less. So while it’s not a good situation, it’s not a disaster either. It might just be a blip in the averages caused by a slow economy and an incoming drought.
Royce, I don’t think quarterly rates notices in Ipswich had any effect on rates. All Council rates right across Queensland have ballooned since the 2008 mergers regardless of how often they issue rate notices.
And Jack, the Council might be looking at starting recovery action next February but it took them over a year last time to move from that point to putting any properties on the block.
With 10% of the land holders in trouble with quarterly rates payments when historical rates have been paid half yearly or yearly is good reason for concern. These land holders represent a rapidly growing number of South Burnett residents facing financial difficulty within the shire.
It’s probably a surprise to some people, but the South Burnett (excluding Cherbourg) is one of the better spots for unemployment in Wide Bay. We do better than Gympie, Fraser Coast or Bundaberg: https://southburnett.com.au/news2/2014/06/south-burnett-in-top-30.