Moorabool ratepayers will receive a discount on their next notices after a recent state government audit found the council had incorrectly collected nearly $40,000.
The Essential Services Commission recently delivered its second report on the compliance of councils with the state-imposed Fair Go Rates system introduced in 2015-16.
Moorabool, Wellington and Northern Grampians councils were the only municipalities whose rates were higher than the cap without approval. Moorabool council said an administrative error in applying rates meant ratepayers were overcharged about $2.35 on average per property.
Council infrastructure general manager Phil Jeffrey said the error occurred when calculating total rate revenue for 2017-18.
“At the time of preparing the 2017-18 budget, an incorrect rate was applied in calculating total revenue for that period,” he said.
“The error meant that council rates increased by 2.14 per cent rather than two per cent, resulting in an extra $39,000 in rates.”
Mr Jeffrey said that the council would adjust 2018-19 rates and put measures in place to prevent a recurrence of the error.
“Council understands the importance of ensuring the correct calculation of the capped average rates in any given year is critical in preserving the integrity of the Fair Go Rates system,” he said.
Andrew Chow, of the Essential Services Commission, said the report found there were no major compliance or systemic issues.
He said 76 of the state’s councils were fully compliant with the average two per cent rate cap or with higher caps successfully sought by councils.
“Three councils were over the cap, but there were reasonable explanations,” Mr Chow said.
Wellington and Northern Grampians councils calculation errors cost ratepayers
in those areas about 23 cents or less per property.
“The additional $39,000 in revenue collected by Moorabool council will be returned to ratepayers in their 2018-19 rates,” Mr Chow said.
The full report is available at bit.ly/2D1pWrB.
