by Mat Churchill

• Rates reductions for many with falling valuations

The Council will go into defecit by $4.7 million in the coming 12 months in an effort to minimise rate increases.

Mayor Val Schier said the release of the new property valuations upon which the new rating structure is based presented a difficult challenge for Cairns Regional Council’s decision in their 2011/12 budget.

The changes, which take effect from today for the 2011/12 financial year, have resulted in an overall net reduction in rates revenue within the Council area of approximately 3.8%.

"This was the first round of revaluations since 2008 and there were some significant changes in property values across the region," Cr Schier said.

“The reduction is comprised of both increases and decreases in property values within various areas of Council and between various rating categories.”

“For example, residential values generally increased by an average of one per cent while inner city commercial properties generally reduced in value in the order of 11%. In some areas individual values have increased by 20% and in others they have reduced by as much as 30%.

“When constructing its budget Council considers the cost of providing adequate levels of service to the community, providing and maintaining infrastructure and planning for the future and must determine the level of rates and other revenue required to fund this expenditure."

Division 10 councillor Julia Leu said minimising rate rises was the primary goal when the budget was being devised.

"We've done our absolute best to keep rates to a minimum," she said. "As part of that process we've looked very very closely at all aspects of expenditure.

Cr Leu said that decreased property valuations will mean a reduction in general rates for many resident.

"Most people will find that if they have experienced a drop in the valuation of their property, they will find that there is a reduction in their general rates."

However Mayor Schier was more conservative in her assessment.

“Through an extensive rate modelling process Council endeavours to ensure a fair and equitable distribution of any rates increases, by taking into account the many factors that affect the rates process, including valuations, rates in the dollar, minimum rates and rating categories.

"It's important to note that because of these factors a reduction in valuation may not necessarily translate into a reduction in Council rates.” 

Cr Leu said it was important for residents to understand that services such as water and sewerage are flat costs that are not tied to the valuation of residents' property.

Rates notices are expected to be issued in August and anyone needing further information or advice will be able to speak with Council representatives at that time.