The City of Unley will approve their 2019-20 budget at this month’s formal Council meeting. I expect us to approve a rate rise of 2.1% at this meeting.

A 2.9% increase would have applied under the Government’s proposed rate capping. This demonstrates, with many councils following our example, that councils are responsible and able to manage their financial affairs.

In theory therefore the rates you pay will increase likewise by 2.1%.

Changes in property values, if consistent across a local government area, do not change what council rates you pay. It is therefore incorrect to say an across the board increase in property values means Council makes a killing.

If you have read my last blog post however, you will know that this year changes in property values however will be erratic to say the  least. This means some of us will pay more, some less.

Two factors influence the calculation of the rates you pay. The budget set by Council and the capital value of the property you own, as set by the Valuer General.

The process of assessing rates for an oncoming year commences with Council setting their budget. The valuer general then advises council what they have calculated is the total value of all rate-able properties in the council area.

The budget is then divided by the total property value to strike what we call “the rate in the $”. In my time on Council, this “rate in the $” has gone down each year.

When the value of your property (as valued by the Valuer General) moves at the same rate as the collective or total then your rates will increase by the amount of the budget increase set by council. If the value of your property increases less than the collective, your rates will increase by less than council’s budget increase. Likewise, if it escalates above the collective, then your increase will exceed the council budget increase.

Hopefully you appreciate a rate rise of 2.1%, and the services they provide you.