Maitland City Council has been called out on the maths behind a rate increase worth millions.
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A pamphlet outlining the extent of potential rate rises has landed in letter boxes across Maitland and Doug Preston, for one, has questioned the full impact.
“The figures are very rubbery and something stinks,” Mr Preston said.
The average urban residential rates notice, based on a $148,000 land valuation, would climb 8.94 per cent annually from $986.54 to $1796.32 – an 82 per cent cumulative increase. Not 62 per cent as council has published.
Council defended the difference as a matter of reporting methods.
“Council acknowledges there are different views as to how the percentage increases should be expressed,” council’s acting general manager Bernie Mortomore said in a statement to the Mercury.
“Council has been active in distributing as much information as possible on both the increase proposed and the services to be provided by council over the period.”
The pamphlet is part of council’s community consultation, which includes 10am and 6pm public meetings today at the town hall, on proposed rate increases.
The rate rise would affect business, farming and residential landholders, with successive increases over seven years starting in July 2014.
Mr Preston estimated the increase would likely hit ratepayers even harder when the Valuer-General reviewed property values in 2014 and 2017.
“Even if it’s a conservative 3 per cent it will add about $100 a year and the end result will be more like $2000,” he said.
The proposed rate increase is the product of surveys to gauge what services residents wanted and what they were prepared to pay as council faced a $92 million deficit within 10 years.
“I don’t agree with council’s argument that rates must increase,” Mr Preston said.
But council said it had worked hard to communicate the proposed increases clearly.
“Council has been active in distributing as much information as possible on both the increase proposed and the services to be provided by council over the period,” Mr Mortomore said.