Duffys Forest: Shock 36 per cent rate rise an ‘unreasonable burden’ on rural property owners
A group of northern beaches residents are facing a 36 per cent rate rise next year, as council admits they can do nothing about it. But one surprise suburb should see a decrease.
Manly
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A group of homeowners on the northern beaches is facing an extraordinary 36 per cent hike in council rates next year.
Around 380 residents on rural acreage in Duffys Forest and Terrey Hills will collectively have to pay an extra $480,000 next year, according to a resident acting on behalf of those affected.
The rates are based on unimproved land values.
Trevor Cain, head of commercial at Ray White real estate, who is representing clients, residents and himself as a property owner, has sent a detailed letter to Northern Beaches Council.
“A fairly small group of people are going to suffer a very large increase in their council rates,” Mr Cain told the Manly Daily.
“They are very upset.
“We are like any other suburb with a broad diversification of people, some are richer than others, some are older.
“There are people who have lost their jobs recently, or their businesses have been decimated by the coronavirus.”
Mr Cain also asked why when both Warringah Mall and the acreage community both saw the value of their land rise by more than 30 per cent in 2019, that the mall’s rates will increase by just 2.6 per cent, while the acreage community is facing a rate rise of more than 36 per cent.
The council responded that legislation for all councils was laid down at the time of amalgamation and certain limits were imposed, including for Warringah Mall. The freeze will last at least another 12 months.
In his letter Mr Cain wrote that the rise is an “unreasonable burden on rural acreage ratepayers” and asked for the council to create a new category for them.
He also questioned the claim by the council that rates will collectively rise on the northern beaches by 1.3 per cent as “mathematically incorrect and an over-simplification”.
While, the council is unable to confirm that 380 households will see a 36 per cent increase, its figures show the valuer general had determined that the value of 146 properties in Duffys Forest had gone up on average by 35.9 per cent, while 946 homes in Terrey Hills had gone up 14 per cent.
Land value forms part of the calculation, so those who have seen their land value go up more than the average household on the peninsula will see a higher rate increase than others.
Residents in Cottage Point, Killarney Heights and surprisingly, Frenchs Forest — which has seen massive investment recently, including a new hospital, roads and a promised new shopping centre — should expect to see a decrease in rates as their land value has gone down.
However, to quantify the huge hike in Duffys Forest, over the past 10 years land values there have increased at a slower rate than most other areas on the northern beaches.
In 2010-2011 the average council rate in Duffys Forest was $3,700. In 2016-2017 it had dropped to $2,990.
Next year the average council rate in Duffys Forest will be $4,282, which amounts to a 14 per cent increase since 2010.
Pittwater Councillor Ian White said he was looking into the issue but he wasn’t sure what the council could do as the formula was set outside of council control and was inflexible.
“I don’t know that we have the opportunity to invent a new category,” he said.
Ray Brownlee, CEO of Northern Beaches Council said he understood the concerns raised by residents whose land valuations supplied by the valuer general have increased.
“We have no choice but to calculate individual rates based on this valuation,” he said.
“We encourage residents to appeal to the valuer general if they don’t agree with the valuation supplied.
“We also have financial hardship provisions in place to support any resident who is having a difficult time which has recently been streamlined to help people affected by COVID-19.”
Determining council rates involves a complicated formula, but the maximum the council is allowed to collect is determined by an independent body.
This year the council is allowed to increase its total pot by 2.6 per cent on last year, although because of the economic impact of COVID-19, it will subside half of that.
Residents with land values that have increased substantially more than the average will see their bills rise in accordance.
Councillors are due to meet in June to approve the 2021 Draft Budget.