ExxonMobil says it has been lumped with a “significant rate burden” in the Hobsons Bay council’s 2014-15 budget.
Consultant Hamish McKnight, acting for ExxonMobil, said his client’s seven properties in Hobsons Bay accounted for half of the total rates paid on 22 petrochemical properties in the city.
He said the differential rate levied by Hobsons Bay council was ExxonMobil’s second-highest “rates burden” nationwide after those in Wellington Shire in Victoria’s east.
Mr McKnight, an associate director with Urbis, said the petrochemical rate in Hobsons Bay was four times higher than the lowest differential rate and was the maximum allowed under law.
“We are seeking council’s consideration towards merging the petrochemical and industrial differential rating category,” Mr McKnight said.
“With respect to Victoria, the only other local government I’m aware of that has a petrochemical differential rating category is the City of Greater Geelong.”
Exxon’s submission states that Geelong’s petrochemical rates are 5.1 per cent less than those in Hobsons Bay.
“Other local government areas (LGAs) in Victoria with comparable properties within their rating base are Wellington Shire and Mornington Peninsula Shire,” Mr McKnight said.
“Both these LGAs levy a general rate on the petrochemical assessments.”
ExxonMobil Australia is part of ExxonMobil, which is the world’s second-largest oil and gas company. The ExxonMobil Altona refinery supplies half of Victoria’s fuel.
This year’s Hobsons Bay rates are set according to property values as at January 1.
While commercial and industrial properties increased in capital improved value by 10.53 and 12.73 per cent, respectively, the value of petrochemical properties fell 1.63 per cent.
A council officer’s report said that in recent years the council had applied rating differentials for commercial and industrial rates that were 2.6 and 3.5 times the residential rate, respectively.
Mayor Sandra Wilson said ExxonMobil’s submission would be considered as part of the council’s budget deliberations.
“Council will advise ExxonMobil of its decision once the budget has been adopted on July 8,” she said.
