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How Rates are calculatedRates are calculated based on property value. Landholders with lower-valued properties pay less rates than owners of higher-valued properties.

The formula for calculating rates is:

Example

• CIV of the residential property = $461,000

• Rate in the dollar for residential properties = $0.002325 (residential)

• A x B = $ Rates$ $= = RATESxCouncil rate income

(capped at 2%)Combined value of

all rateable propertiesMarket value ofyour property

Your generalrates & changes

The ratein the dollar

How your general rates and charges are calculated

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Lifestyle Capital of Victoria

Frankston City CouncilRates and Valuations 2020 – 2021

COVID-19 community care packageFrankston City Council is acutely aware that the impact of the COVID-19 pandemic locally is, and will continue to be far reaching. To address the uncertainly associated with the financial cost of responding to the virus in the future, Council has set aside funding for a care package of $3 million, which would be made available from the 2020–2021 financial year. This funding is in addition to the substantial savings

measures introduced in 2019-2020, with funds diverted to offset as best as possible the cost impact of COVID-19 on providing essential services.

The community is invited to provide their feedback on how these funds should be invested to support our city’s current and future recovery efforts. Details on how to provide your feedback can be found on the last page of this fact sheet.

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Charges and rebates also impact on the final amount payable

ChargesMunicipal Charge

Applied equally to all properties and includes administrative costs such as finance, asset management, information systems, corporate records, human resources and governance requirements.

Fire Services Property Levy

The Victorian Government requires all councils to collect this fee on their behalf. Details: firelevy.vic.gov.au

Landfill Levy

All Victorian councils are required to collect this on behalf of the Victorian Government which places a tax on all waste going to landfill. The levy is included in waste charges.

ValuationsWhat is a Valuation?

A valuation is an assessment of the market value of a property, at a specific date and in accordance with the Valuation of Land Act 1960 legislation and the Valuation Best Practice Specifications.

Your property valuation is shown on your rate notice and rates are calculated on the Capital Improved Value (CIV) method, which is based on the estimated market value of the property including any improvements.

• Site Value (SV) — Value of Land Only

• Capital Improved Value (CIV) — Value of land and all improvements such as buildings, garages, pools, tennis courts etc.

• Net Annual Value (NAV) — Reflects the annual rental value (Residential Properties reflect 5% of the CIV, commercial and industrial properties reflect the average annual rental amount)

• The site value (SV) is included in the Capital Improved Value (CIV)

How often are property valuations carried out?

The Valuer-General is now responsible for the undertaking of valuations (for Council rates, fire services levy and land tax purposes) in Victoria. These valuations are now undertaken annually whereas previously they were undertaken every two years..

Revaluations yearly provides the opportunity for all valuations to be reviewed, taking into account the latest market evidence (sales and rents) for each property sector and district within a municipality and adjustments made to property valuations where appropriate.

This information is applied to individual properties throughout the municipality. Land size, location, house value, plus the added value of a garage, garden and other improvements are taken into consideration.

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How will the new Valuation affect my Rates?Rates are based on the combination of two variables, the rate in the dollar, and the valuation. The rate in the dollar is multiplied by the valuation to determine your rates.If the rate in the dollar remained constant, those properties which increased in value above the average increase would pay higher rates. Conversely, those properties which decreased in value would pay lower rates.

If the rate in the dollar increased and all valuations decreased, the rates payable may increase.If the rate in the dollar increased and all valuations were to be increased by the same percentage, the rates payable will increase.

What is the rate increase for this year? Rate Capping has been introduced by the State Government as of 1st July 2016. The rate cap does not apply to other charges such as bins or the Fire Service Levy.The rate cap for 2019/2020 is 2.5% (Will need to be updated once finalised)The 2019/2020 Annual Budget includes a capped

increase in the average base rate of 2.5%. Previous yeas cap (based on CPI)2017–2018 2.00%2018–2019 2.25%2019–2020 2.5%2020–2021 2.00% (to

Why am I charged rates? Rates are an important source of revenue. Council rates fund the following essential services which benefit the community. • Aged and Disabled Services• Arts• Child, Youth and Family Care• Community Buildings• Community Grants• Drainage• Economic Development• Events and Festivals

• Fire Prevention• Governance• Land Use and Conservation Planning• Leisure Facilities• Libraries• Renewable Resources• Road and Foot paths Parks and Reserves• School Crossings• Social Planning• Waste and Recycling

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What if I can’t pay my rates? If you are experiencing payment difficulties and don’t believe you can meet your upcoming rates payment, you can apply to enter into a flexible payment plan allowing for weekly or fortnightly payments. An eligible person/s can only apply for a pension rebate on a property or a part of a property that is used exclusively for residential purposes and that it is

the person’s sole or principal place of residence. The Municipal rates concession provides a 50% discount off your Council rates up to a maximum of $235.15 plus an additional $50.00 concession that is set-off against your fire service levy charges; therefore an overall maximum concession of $285.15 for 2019–2020.

What are rating differentials and what part do they plan in setting rates? Differentials refer to different rating categories that are based on each property and what that property is used for; such as residential, business or farming. The rate and amount of rates payable in relation to land in each category of differential are: • General (residential) — 1.0• Commercial and Industrial — 1.25• Farm — 0.80

• Vacant Land — 1.25• Derelict — 3.0• Retirement Village — 0.75• Baxter Village Agreement — 0.70• Rateable recreational properties — Various

2P

ARTS CENTRE

EVENTS

PARC

How rates are allocated for every $100 invested locally

Total budget available $219.19 million

Arts, culture and libraries $4.54

Age services $5.26

Corporate $6.47

Parks and leisure $13.14

Planning and development $7.55

Family services $4.01

Roads and drainage $7.66

Environment and waste $10.66

Capital works $33.05

Property and facilities $2.81 Safety and

enforcement $4.85

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What will council collect in rates in 2020/21 Council will collect a total of $126 million in rates and charges. Please refer to the 2020/21 budget for further information.The level of required rates and charges has been

considered in line with the Council plan, the Council’s other sources of income and the planned expenditure on services and works to be undertaken for the community.

What will my rates cost? When you receive your rates notice, it is important NOT to add your capital improved value (CIV) and site value (SV) together as this is not how rates are calculated. Looking at your 2019/20 rates notice, follow these simple steps to calculate your rates.

Example:

Step 1: Find your Capital Improved Value on the front of your rates notice

• Site Value $240,000• Capital Improved Value $461,000• Net Annual Value $38,000Step 2: Select your rating category from the table below

• General (residential) — $0.002320• Commercial and Industrial — $0.002900• Farm — $0.001856• Vacant Land — $0.002900• Derelict — $0.006959• Retirement Village — $0.001740• Baxter Village Agreement — $0.001218• Rateable recreational properties – Various Step 3: Multiply your Capital Improved Value by the rate payable for $ of CIVFor example, if the Capital Improved Value of your home (residential property) is $461,000, you would multiply

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$461,000 by $0.002320 to get your rates payable. EG-$461,000 (CIV) x $0.002320 (rate payable per $of CIV) =$1069.52Step 4: Add your garbage charges Residential 120L bin $380.20Residential 80L bin $30270Green Waste 240L $145.50

EG $1069.52 (rates) + $380.20 (garbage) = $1449.72Step 5: Add the state governments Fire Services Levy and Municipal Charge. Council is responsible for collecting this levy on behalf of the state government.

What can I do if I object to my rates? If you feel your property is incorrectly valued, then you may object by completing and lodging the Prescribed Form within two (2) months of the date of issue shown on the Land Tax Assessment Notice.

Objections are processed by the appointed valuer. Once the valuer has made their determination a recommendation is forwarded to the VGV for review and confirmation.

Financial DifficultyIf you are unable to pay your rates and charges within the required timeframes, or experiencing short term financial difficulty please download and complete the Arrangement to Pay (ATP) form available on Council’s website.By application, you can arrange payment plan, such as making fortnightly or monthly repayments that are more aligned to your budget. You are encouraged to

make regular contributions as this will significantly help in reducing your account balance.Please commence making the payments as stated on your ATP form.Should you be experiencing Financial Hardship then Council will make referral to a Financial Counselling service who can assist in making application for Financial Hardship Support.

For further information or to make a submission

Budget enquiriesAttn: Manager Financial and Corporate Planning info@frankston.vic.gov.au

Submissions

In accordance with Section 129 of the Local Government Act 1989, any person may make a submission on the proposed Annual Budget. All submissions received before 5pm Monday 4 May 2020 will be considered by Council. Any person lodging a submission should clearly state whether they wish to be heard in support of the submission. Such a person will be entitled to appear in person or by a person acting on his or her behalf.

All submissions will be heard by a committee of Council on Wednesday 13 May 2020.

Written submissions

Phil Cantillon: Chief Executive Officer

Frankston City Council PO BOX 490 FRANKSTON VIC 3199

Email

Attn: Manager Financial and Corporate Planning info@frankston.vic.gov.au

Online

frankston.vic.gov.au/HaveYourSay