Rates Up For Just A View
Newcastle Herald
Saturday June 12, 1999
OWNERS of expensive Newcastle strata units will pay $82 more in minimum rates from July under a proposal being promoted by Newcastle Lord Mayor Cr Greg Heys.
`But it's the best option for the majority of ratepayers. The best of both worlds,' Cr Heys (ALP) said yesterday of his share-the-burden budget plan and 2.4% rate rise cap.
Under this ad valorem (land value) system, council's rates for many strata property owners ? with million-dollar ocean or harbour views ? would rise from the current $318 minimum to $400.
But Cr Heys said pensioners and lower-income people in now high-valued areas, such as Merewether, would pay less.
`It represents rate reductions for about 70% of ratepayers with land values above $47,000 compared to the present,' he said.
He was pleased to support the council staff recommendation on the 1999/2000 budget to be discussed by Newcastle city councillors at what is now expected to be a fiery meeting on Tuesday night.
The option, now being viewed as a possible `done deal', would see rates on an average property (a $60,000 land value) dropping from $543 to $531 a year.
Those now paying $1813 (a $200,000 land value) would pay $1771.
And in other moves, a new, tough-talking Cr Heys said he: * Wanted to eliminate new laptops proposed for councillors (saving $75,000). * Would be pushing for up to $500,000 for West End re-vitalisation, up to $330,000 extra for sport and $30,000 for public safety. * Would not support a recommended increase in councillor allowances of $645 per councillor (to $14,095) and $3172 for himself (to $44,372).
`It's going to be a tough year,' Cr Heys said.
`We don't know the effect of BHP leaving.
`This is a gesture of support to those people who will be doing it tough next financial year. The community is polarised on the rating issue.
`This option represents a middle ground ... what I am supporting will have the same effect as a proposed 20% base charge.'
But base charge supporter Cr Morgan Jones (Citizens Group) described Cr Heys' comments as `a cop out'.
`Why has the State Government got it in its options list? They must think it's sensible ... why does our neighbouring Lake Macquarie City Council have a 40% base rate?' he said
Unit dwellers would be penalised if the ALP had its way, Cr Jones said.
With the ALP throwing its weight behind the scheme, most councillors seem set to adopt what was option three on the recent ratepayer community survey.
He said council's recent community survey revealed 743 votes in favour of retaining the current land value system with 574 supporting a base charge.
© 1999 Newcastle Herald