PORT Stephens Council will consider what, if any, additional rate relief it can give to residents in the Williamtown red zone on Tuesday night.
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Official land values have remained largely unchanged – on which rates are calculated – with rates only expected to ease $111 on residential lots in 2016-17.
Councillor Peter Kafer lodged the notice of motion “while we can still do something”.
“As I’ve said to council, there are already two people who have handed their keys back to the bank,” he said.
“It’s important we soften the blow in whatever way we can.”
Many land holders in areas including Williamtown, Salt Ash and Fullerton Cove believed their land to be worthless since the discovery of fire fighting foam contaminants in groundwater. One resident has even presented Fairfax with documentation from an independent registered valuer who said the property was worth “zero”.
Consequently there are more than a few residents who don’t want to pay rates.
Before councillors decide what to do on Tuesday night they’ve been asked to consider certain difficulties.
The Local Government Act 1993 provides councils with limited flexibility in the way it collects rate revenue.
“Council is not empowered to write-off or reduce rates except in a very narrow set of circumstances, none of which apply in the case of the Williamtown contamination investigation area,” the council’s corporate services group manager Carmel Foster said in the report.
The council’s advice to affected residents in recent months has been to have their land valuations reviewed.
Ms Foster revealed that the council has been in regular contact with the NSW Valuer General's office and has recently been provided with revised land values for 376 properties out of the 438 in the investigation area.
Consequently average land values are now $32,300 lower and the council calculates that will save ratepayers $111 in the 2016-17 financial year.
The average land value reduction for farmland properties is $63,300 which will result in a rate saving of $218.
Business properties have fallen $51,500 in value on average that equates to a $421 saving.
A payment plan might be the only option the council can extend under its hardship policy. It would then fall to the general manager to waive any interest charges that would normally apply.
“These are extraordinary circumstances – surely we can do something to give these people rate relief,” Cr Kafer said.
“I still believe as human beings and councillors that we should find some way around this and maybe the Premier [Mike Baird] can help.”