NEW adjustment factors for the Municipality of Derwent Valley have resulted in the Adjusted Assessed Annual Values (AAAV) for residential properties skyrocketing. These factors will apply to the new rates demands to be sent out shortly.
For the first time Maydena has been separated from the rest of the municipality and given separate adjustment factors The rise in AAAV for residential property in Maydena is 74%. Council have reduced the rate in the dollar by about 15%, but I have calculated the resultant rate rise for Maydena to be 48.5% from last year’s levels.
For the remainder of the residential property in the municipality the AAAV has risen by 30% and I expect the rate rise to be in the order of 11%. These AAAV rises will apply to the general rate and the fire levies.
The rise in residential property AAAVs has been brought about by the very significant rise in the sale prices of residential property in the Derwent Valley. Primary production has also risen, but commercial property and some other classes of property have lower adjustment factors and thus these rates rise will be lower. Hence an increase in the burden of the rates will fall on residential property though out the Municipality.
This leaves Maydena ratepayers with extraordinary rate imposts compared with last year. A similar situation has arisen in the City of Hobart which has been revalued in its entirety. However the Hobart City Council (HCC) has introduced a differential rating model for different suburbs which ensures no rates rise more than 2.6%.
The Central Highlands Councillors were presented with a budget that would have increased the rates revenue by 8.5%, however the unanimous decision was to fix the rate revenue rise to 4.8%. The Derwent Valley Council should have been aware of the impost on Maydena residents prior to striking the rates on July 7, but appear not to have been so informed.
Had proper research of the effect in the change in AAAVs had been carried out, I feel sure the Council would have introduced a differential rating model, as the HCC have done, “to help mitigate disparity in the distribution of rate collections resulting from the municipal revaluation.” For more detailed information check out the HCC website.