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Possible shower min 12° - max 22° Budget best council could offer: Abbot
12:00a.m. 4th July 2008
Sunshine Coast homeowners will pay on average between $91 and $143 more this year while the cost for landlords will be as much as $304 under new rates structures passed by council yesterday.
Mayor Bob Abbot has defended the average 7.5% increase saying it was akin to a beer or a cup of coffee a week.
Rates have risen 6.5% in Caloundra, 9.2% in Noosa and 8.9% in Maroochy.
Rental property owners have copped the highest increase, with the average rates rise on an investment property between $109 for a unit in Caloundra and $304 for a house in Noosa.
Rates on investment properties in the former-Noosa Shire have risen 17.6%, 16.6% in Maroochy and 13.3% in Caloundra.
Pensioners will still receive a rate discount from council in line with what they previously received.
The council’s budget totals $673 million, including $498 million operating expenditure, $168 million capital expenditure and $25.2 million for repayment of loans.
Mayor Bob Abbot said the rate rise equated to around $1.75 to $3 a week for the average ratepayer but was the best council could offer given the current economic climate.
“(It) might mean one less packet of cigarettes or one less beer, or whatever,” he said.
“I understand it’s an imposition they probably didn’t want (but) the cost of fuel can rise that much in a tank in a day, so $3 a week over 12 months to give them the level of service they want and they’ve already got, I don’t think is unfair.
The changes will affect 30,903 homeowners in the Caloundra area, 46,971 in Maroochy and 18,435 in Noosa.
“Even three days ago I still thought 9.5%, maybe 10%, but we’ve managed to get it in under that and I’m really happy with that,” Mr Abbot said.
“I was considering there might’ve been one or two initiatives like the transport levy but the councillors said no not this time, it’s too expensive for the people of the Sunshine Coast with the troubles they have been having with fuel and interest rates.”
He said residents should feel they were the big winners out of the $673 million budget because council had scrapped plans to introduce levies which would create an extra burden on ratepayers.
“We’ve spread the load fairly evenly,” he said.
“We’re looking at $1.8 million a year in interest rates we have to find to service loans so that’s not going to be easy.
“In all fairness we haven’t brought any new great initiatives. It’s a budget that’s fair in securing revenue.”
Mr Abbot said it was the budget he never thought would happen, labelling yesterday’s adoption meeting a “meritorious day”.
“Three months to even bring together the three budgets was awesome,” he said.
“When we first got started we had major issues with liabilities ... figures like $4 million for the lakes, $20 million for the water and now another $6 million on that. All of these things had been building up a big case against us.”
Infrastructure spending remains a priority, with $212 for capital works and $17.5 million for operational projects. Roads, waste management, waterways and coastal infrastructure have received the most funding.
Environmental programs and projects to the tune of $8.8m have been approved, including further funding for the Noosa Biosphere Reserve and the roll out of an “ecoBiz” program to encourage sustainable business practices.
Tourism and economic development have received an $8 million boost, including money for events, economic development projects, further funding for the Connecting the Coast broadband infrastructure.
Given there are 141,000 possible rating combinations, homeowners are encouraged to look at their most recent Department of Natural Resources land valuation notice and follow the council website links to the Budget Agenda Revenue Statement for an approximate calculation.
The council website is www.sunshinecoast.qld.gov.au.
The bottom line
The average residential bottom-line rate increase across the Sunshine Coast in 2008-09 will be 7.5% – equal to an average $2.50 a week increase.
The figures are based on averages – 64% of residents will pay about this amount.
Houses:
Maroochy: $1892.80, up $143.80 or 8.2%
Noosa: $1892.80, up $157.90 or 9.1%
Caloundra: $1885.90, up $91.30 or 5.1%
Low-rise units:
Maroochy: $1801.30, up $147.30 or 8.9%
Noosa: $1801.30, up $151.90 or 9.2%
Caloundra: $1784.40, up $109.50 or 6.5%
For houses that are not the owner’s principal place of residence:
Maroochy: $2039.50, up $290.50 or 16.6%
Noosa: $2039.50, up $304.60 or 17.6%
Caloundra: $2032.60, up $238 or 13.3%.
Major capital expenditure:
Transportation $48.3 million. Includes:
Reseals and rehabilitation $12.5m
Road Infrastructure $9.7m
Strategic pathway network $6.6m
Bridges $5.3m
Streetscapes $5m
Gravel roads $2.5m
Waste Management $8.4 million. Includes:
Resource recovery centres – Nambour $2.6m and Coolum $1.9m
Waterway and coastal infrastructure $4.3m. Includes:
Beach access and foreshores $3.5m
Rivers and streams $500,000
Canals $300,000
Sunshine Coast Regional Council budget
> Sunshine Coast rates rise breakdown> Airport the biggest winner in council budget
> Mayor defends landlord rate slug plan
> Coast’s $20m water asset rip-off
> Queensland councils ‘forced to raise rates’
> Community and environment win budget nod
> Budget millions to sport, not Stockland stadium
> Budget best council could offer: Abbot
> Public transport budget boost for Coast
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Recent Comments
Ann Bligh has stolen our water assets, without adequate compensation and denied us the funding for the true cost of amalgamation, not forgetting the financial mess the previous Mayors left us with.
Under the cicumstances in which this Labor Goverment has put us in, I am amazed that we got away with such a small rates rise.
Good job Bob.
I don't use your libraries, airport, childcare services, aged care services, water, or sewerage infrastructure. SOme of t his infrastructure has large debt attached to it which I am certain my rates have helped pay for over the years but do I get any benefit? No.
Like many hinterland residents, aside from the roads and rubbish pickup, I don't use Council's infrastructure or systems for much at all. When my dog was killed by wild dogs a year or so ago, I called Council to see if there was anything they could do in relation to wild dogs but apparently that's my problem to manage as well. The kids, my wife and I really miss our pet. But never the less, we appreciate the opportunity to contribute to your consolidated revenue.
I probably won't miss that coffee or beer too much as we are so fortunate in this Country that those things don't even register as a blip on the meter however as you have drawn the analogy, at least with a cup of coffee or the beer I can both see what I am getting for my money and enjoy it as well. And of course, I have a choice whether I actually purchase it in the first place. Unlike with Council.
All I see with Council is things like arguments over Councillors cars, salaries that have risen some 20% over the previous Maroochy Councillor salaries and of course, your refurbished day bed so you can have a nap during the day or evening. I'm certain there are plenty of more examples to discuss here as well.
And just as an aside Bob and co, a $304 increase for landlords, what message is that sending Bob? Don't want or need investors to provide housing options? But in reality as it equals $5.85 per week, almost twice what the home owner is paying at $3 per week, that's means that the poor renter, who will no doubt be the one ultimately paying for that increase, will be missing almost 2 coffees or 2 beers. How's that for equality? Once you've bled the investor dry or driven them out, who will you pick on next to treat unequitably?
Smoke and mirrors Bob and Co, smoke and mirrors.
You whine about services that you dont use eg the library- why not go and use them? borrow a book instead of buying one, sit and read the newspaper for free, or use the free internet services?
I am sure you enjoy walking on footpaths- if you think you dont why not wander down to alex headland and go for walk- maybe the fresh sea breeze with blow some of the bitterness out of you?
And landlords won't just pass on $5.85 per week, it'll go up to $10 per week.
Good work Bob for not seeing who is really paying the cost. Right now, I'm regretting having ticked your name on the ballot paper.
I urge anyone who is blaming the council for this hike to do a little background research and see if they can find even one council in Queensland - including ones that weren't amalgamated - that hasn't had to increase their rates significantly. I've been looking but haven't found any so far.
As for Landlords- if they can't absorb a relatively small increase like this - maybe a large investment such as property isn't the right type of investment for them.
Please refrain from name calling and please refrain from your assumptions about me and just allow me to have my opinion as I allow you to have yours. They don't have to match do they? Do we need a world full of people that think like you? Or are you so small minded that your opinion is the only one?
And just to let you know, there are no footpaths anywhere near where I live. To go for a walk on the beach I have to drive for 20 minutes, burning valuable fuel because there is no public transport near my home.
And whilst I appreciate Council offers services such as free internet, free books etc, I don't need them or use them so why suggest that I use them? Are Council redistributing wealth with their policies and services?
I can see the bigger picture, I can see what other Councils are doing but I still don't agree with this Councils inequitable rate rises.
Relax Kulangoor Res, maybe you should go for a walk and calm down :)
just like blaming Rudd and co for interest rate rises, i think pointing the finger at Bob and co for rate rises is a bit unfair. home owners and investors have had it very good for years, this is just the other side of the coin...
I mean, fairs fair isn't it. If the tenants have to pay the landlords more, surely the tenants should also share in the tax and capital gains benefits.
And before you hail me down in flames well I am a landlord, a rate payer, a business owner and have children that rent here on the coast.
Bob is doing the best that he can with the disaster that he inherited from the former Maroochy Shire, just be patient and give him a go!
Okay so here is some more info. I don't live in Woombye so it's still a 5 minute drive to Woombye where the buses do run from but thanks for looking up the bus schedule for me.
And your other comment above re my name and the link to loving the coast, I use the term Coast Lover more as a reflection of the entire region. It's not just the thin strip of coastline where the majority of the population live .... although you could be forgiven for thinking it was the way the hinterland is mostly forgotten.
I fear we h ave gotten way off track here with this so in an effort to get back on track, I will reiterate that as a hinterland resident, I see little value for dollar in the rate rise for me. Rather all I see is more expenditure on airports, Councillor wages, phones, cars etc etc etc. A lot of which helps the tourist but very little of which helps me even though I am forced to pay more for the little I get.
Additionally I feel that the double whammy hit on Investors will do nothing in the short term except harm the poor renters who are ultimately the ones that are going to pay the extra tax slug. Investors might be able to absorb the rise but it is likely they won't and it is probably unfair that they do.
Okay so we are back on track?
if i was sitting on a 500k property, enjoying $50,000 growth each year (that's being conservative) and effectively paying 5% interest on the mortgage, thanks to a rental yield of 5% (again, conservative) you would not hear one word of complaint from me, if i was asked to find an extra $300 for my rates bill.
You do not pay a lot less than those in town.
Essentially the rates you pay are for services.
The general rate is calculated on an arbitary amount (land valuation), so a ratepayer on rural res has a much higher valuation than say a unit owner down on the coast. Due to the number of units stacked on a small parcel of land Council charges a minimum base fee to catch those who may have a rate share of say 1/20th of a piece of land with an unimproved value of say $1M. Thus on your rural property valued at say 300k you are paying 33% more general rate than someone in a unit that has a calculated land value of 200k.
Now that is INCONGRUOUS !!!
They pay 33% less all the while getting the pools, childcare, libraries, resteraunts, shops, street sweeping, parks, kerb and channelling, sewage,water, board walks, bicycle tracks, the clean river, lifguards, beach cleaning etc etc etc.
These ratepayers have all of this on their doorstep whilst you are subsidising the services that you rarely see.
How many units have you counted down there lately ? Is it in the hundreds or thousands ?
Do the maths.
The difference could well have sealed your dirt road !
food for thought- there are now less councillors than there were this time last year.
spending money on an airport brings more tourists to the coast- our primary money spinner on the coast- they eat food too so given the nature of the business you run that can only be a good thing.
lets consdier interest rate rises-one school of though is that some people are better off renting than having a mortgage- we have seen numerous interest rate rises in the past few financial quarters- unfortunately for landlords, and fortnuanely for renters, rent does not go up immediately with a rise in interest rates- landlords have to wait until the end of the current lease before they can up the rent.
CoastLover if you run a business you would be aware that some of these increased expenses are tax deductuble, and i can only assume you pass on some of these expenses to your customers.
But hey everyone, keep up the good work, it’s a good read!
Alas the masses only drive down tardily built and poorly maintained State Main Roads and bridges.
Some of these they even put a toll on for your driving pleasure. These masses flood down the highway in to our highly SERVICED coastal strip making it difficult for the rural ratepayers to find a park anywhere near what they have been excessively paying for. Then those masses flood back down the highway to their barren concrete wasteland to drink our freshly stolen water.
...and lo the investors were happy, the developers were happy, the masses were happy ....and Anna looked over what she had created and she was pleased.
Then on the eighth day she rested, then she had a facial and pedicure before becomming the new QLD Trade Attache in Paris; and so it came to pass that Anna was well heeled and well healed. ;-P
And yes, your tenants do share in your mortgage. They already do. That's what they're paying the rent for isn't it?
Just remember that this is all about the AVERAGES so far. You haven't seen the impact of the State's Unimproved Capital Values increases yet. Some people are going to be paying a heck of a lot more than the average Rate increases because of this. And by the same token, many people will not go up anywhere near as much as the averages because those other people will bear the brunt of it.
To those of you who are complaining that Noosa got some of their services through while other regions didn't. Just bear in mind that Noosa has also taken the largest hit in terms of Rates increases. And remember too that they used to have the lowest Rates on the Coast under the old Noosa Council and Big Bob...before the amalgamation that "we had to have" but never wanted.
Keep in mind some people also own their investment properties outright, so does that mean you are investing in that person because they collect all the rental money, next you will be saying you should have a part of that persons profit as well!
I dont understand what you mean by false assumptions, I am currently struggling to keep my investment property. In actual fact if I sold my investment property I would be far better off in terms of available money to spend each week, however I accpet this hardship now and work that bit harder so that when I do come to retierment I will be able to support my self with the income from my investment property or hopefully properties.
Redneck you to are right, I will make money out of it when I sell the property, but currently it takes away some of my spending money so it is costing me to keep it. The reason i invested in property is that i want some sort of income for when I retire.
What I mean by your assumptions is that you are assuming that I and others don't have property investments. I probably have more than you do, but I seem to be able to make money out of mine where you apparently don't.
Are you missing something critical here ?
I think you've overlooked the charitable nature of being a property speculator. Fair go these investors aren't into it for the money or personal gain, give them a break....please. After all it's not easy to speculate and build up a portfolio of property in partnership with the Australian Tax Office for the sole purpose of assisting the Australian Government in their Public Housing Role Out Programme.
Yes there may be a few misguided wowsers crying fowl over assistance with the public purse and all that stuff, but hey they'd be the same luddites complaining about public spending on Big Bob's new Office, company car, Laptop (electronic that is) and laser pointer and electric pencil sharpener. Bob is as entitled to an entertainment account as the Public Housing Speculators are to depreciation costs and repairs deductions and oh yeah...their rates.
It gives me a warm feeling knowing that my taxes are going to such good community causes.
Now I wonder if I could claim my tax as a donation to charity ?
On reading through the above extracted part; where's it going to end? All councils across this state have been forced to increase costs thus allowing them to recover costs and to which, some of the money will flow to the Queensland government. Whilst I'm tired of the rot that is being dished out by governments that really couldn't care, perhaps the Australian Defence Minister has a interesting point about doing away with state governments and just have federal and local governments. As we await a clearer position from the Coalition parties here in Queensland re whether they will revert back to the previous local government structure and not have super councils, one needs to remain hopeful that in 12 months time when councils hand down their annual budget, less pain.
As for your last comment "if i was sitting on a 500k property, enjoying $50,000 growth each year (that's being conservative) and effectively paying 5% interest on the mortgage, thanks to a rental yield of 5% (again, conservative) you would not hear one word of complaint from me, if i was asked to find an extra $300 for my rates bill."
- enjoying $50k growth each year, its fine to say that but prices go and down and the only thing that changes is our rates go up because the value is higher and we really dont get to enjoy it until the property is sold, at which time you would probably whinge that the new owners want to move in.
- effectively paying 5% interest! you pay rent for the service of having somewhere to live. I still pay the full interest amount, the rent helps to cover costs such as rates, insurance, mortgage and agency fees.
yes, a tenant pays rent for somewhere to live, but that rent is effectively half of the interest component of the mortgage repayment. more than half. doesn't matter where you actually spend the rent dollars, they are still worth half the interest.
i would become a landlord in a second, if i could afford to enter the market.
If you think this is bad, wait until after November when our water usage costs are doubled on top of the increase in council rates. Then ya'll really have something to whinge about.
landlords have enough to cope with for which there is little compo, like damage by tennants for which bonds do not cover,and lets not leave out land tax, and the soon to come water increases.
Who in there right mind would even consider building new homes for rental to just see them trashed in 12months?
Yes sure there are good tennats, but theres just as many bad tennats, and little recourse for landlords to recoup losses, because of poorly constructed and enforced laws.
It is ok to say there are capital gain increases, when in fact the property market might soon or later go backwards big time, like in England and the USA
and then of course there may well be a glut of housing on the market when the baby boomers decide to downsize..........capital gains yeah right! good luck
Being into Property investments for well over 20years I now see that property investments may well be more risky than Share Investments.
Consider with share investment your investment risk is spread, and the entry and exit fees are no where near the stamp duty / legal costs associated with property.
Will be interesting to see what charges the council thinks up next when property valuations plumit, leaving them very short of money as rates are worked out on the unimproved value of the property........hey i know lets set the rates on improved valuations!
At the end of the day the council needs to clearly justify its expenditure if its so short of cash, the amount of money spent on rubbish is surreal, and the excuse of blaming it on the state goverment does not wash.
I pay rates for what? to have a running tap, and to be able to poo in my toilet, and get trapped in the traffic chaos.
interest rates, inflation etc are all managed by the RBA
in times of increased spending, interest rates will increase to slow said spending and visa versa.
As people are spending more (at work i see a lot of over zealous people wanting to spend more on useless things now) everyday prices will rise.
useless information but unfortunately not everything can be blamed on labor.
water mismanagement, hecs etc yes, interest rates no.
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