THE business community is concerned the special rate variation proposed by Council will put more strain on Armidale businesses.
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But while many could understand why Council was seeking a general rates increase of 20 per cent, some questioned whether it would be the right course of action.
About 30 community business leaders attended Wednesday morning’s meeting with Armidale Dumaresq Council’s mayor and general manager to discuss the change.
Kirk and Michelle Vidlear from the White Bull said although they could understand the need to increase rates to address Council’s asset backlog, they questioned whether the community could afford a 20 per cent increase.
“Please don’t go 20 per cent straight off the cuff,” Mrs Vidlear said. “I’d hate to see more shops close down. It is tough enough out there for business and families. I understand the increase needs to happen but the timing and amount will cripple the town.”
Their concerns were echoed by Jane Fraser, who questioned if the 20 per cent increase was the only option.
Council is proposing either an upfront rate increase of 20 per cent for seven years or a “soft approach” of 10 per cent this year, followed by another 10 per cent in 2015.
Ms Fraser said Council was not proposing any alternatives to a rate hike because it said keeping rates the same was unviable.
General manager Shane Burns said other options could include reduction of services or even paid parking, but they had proved to be unpopular in the past.
Mayor Laurie Bishop said there will be “no silver bullet” and the rate increase would be a “small price to pay to maintain [Armidale’s] current lifestyle”.
According to Council figures businesses within the city would pay an average $363.64 per year with an increase of 22.3 per cent, which includes rate pegging at an estimated 2.3 per cent.
Residential rate payers within the city could expect to pay an additional $211.11, while those classed as non-urban would pay $312.02 more on average at this rate.
It estimates businesses will, on average, pay an extra $7 per week, which was considered a “small price to pay” by Council. Councillors will discuss the special rate variation at Monday night’s Council meeting.
