Residents of Redan, Soldiers Hill, Wendouree, Golden Point, Ballarat East and more - brace yourselves for a sharp increase in your rates notice this year.
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Many home-owners in these suburbs saw some of the biggest house prices rises in Ballarat last year - and now they can expect a hefty surge in their rates.
Like many councils, the City of Ballarat uses the Capital Improved Value, or CIV, of properties to calculate rate notices.
The CIV is the value of land, including its buildings and any other improvements, and is used to determine how much to charge residents. It does not mean that if your property went up in value you will automatically receive a rates increase.
Councillors approved a Ballarat budget to increase rates and charges by 2.5 per cent - the cap imposed this year by the Essential Services Commission. This means the average increase across all properties cannot be more than 2.5 per cent. Owners of houses that made the biggest leaps in value will shoulder the brunt of the increase.
The latest valuation for properties within the City of Ballarat area is outlined in the agenda for next Wednesday's ordinary council meeting. Across all residential properties, which make up more than 80 per cent of the sites assessed around Ballarat, the total Capital Improved Value has gone up by 9.1 per cent.
Rates are calculated by multiplying the CIV of a property by a "rate in dollar". This has gone down by 5.7 per cent this year from 0.004159 to 0.003922.
For example, the 2018 rates for a house that cost $300,000 would have been $1247.70 (300,000 x 0.004159). With a 10 per cent increase in value to $330,000 as of January 1 this year, the rates for the same house would be set at $1294.26 (330,000 x 0.003922). If it had risen five per cent to 315,000, rates would drop to $1235.43.
READ MORE: Median house prices reach $400,000
Those living in suburbs with steadier house prices are likely to see their rates slightly reduced. Areas with slower moving house prices include Ballarat Central and Newington.
The overall value of Ballarat's property, including all residential, commercial, industrial, rural and non-rateable properties has increased by more than $1.5 billion in the past year according to the Valuer General, with the total now reaching $22.149 billion.
The council is due to raise a total of $122.8 million through rates and charges this financial year.
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