special rate variation community presentations · 2018. 2. 14. · residential comparison...
TRANSCRIPT
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Special Rate Variation
Community Presentations
November/December 2017
Kerry McMurray
Director Corporate, Commercial and Community Services
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Your Council, Your Community
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What is a Special Rate Variation (SRV)?Why is Council applying for an SRV?What is the money to be used for?Are there other alternatives?What is the impact of the proposed SRV on
average rates?When will the outcome of the SRV application
be known?
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-3.00%
-2.00%
-1.00%
0.00%
1.00%
2.00%
3.00%
4.00%
No SRV
SRV for 3 yearscontinuous (508A) -General Fund
Benchmark
Operating Performance Ratio - General Fund
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20.00%
70.00%
120.00%
170.00%
220.00%
270.00%
Infrastructure Renewals Ratio
Asset Renewals (Building &Infrastructure) - SRV
Benchmark
Asset Renewals (Building &Infrastructure)
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86%
88%
90%
92%
94%
96%
98%
100%
102%
104%
Asset Maintenance Ratio
Current AssetMaintenance - SRV
Benchmark
Current AssetMaintenance
Actuals
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0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
Infrastructure Backlog Ratio
General Fund
Benchmark
General Fund - SRV
Actuals
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$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
$35,000.00
$40,000.00
$45,000.00
$50,000.00
Shellharbour City Council Kiama Council Shoalhaven City Council Wollongong City Council Wingecarribee ShireCouncil
Infrastructure Asset Value per Assessment 2017
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0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Wingecarribee Shire Council Wollongong City Council Shellharbour City Council Shoalhaven City Council Kiama Council
2016 2017
Total % to Total Asset Carrying Amount
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Infrastructure Renewal Shortfall
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14,000,000
15,000,000
16,000,000
17,000,000
18,000,000
19,000,000
20,000,000
21,000,000
17/18 18/19 19/20 20/21 21/22 22/23 23/24 24/25 25/26 26/27
Rates Revenue
Rates Revenue
Rates Revenue - SRVfor 3 years
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Regional Comparison
In terms of the size and scale of the proposed SRV in Kiama LGA the
following information regarding SRV’s approved in the region is set out
below:
Council SRV increases Cumulative
Impact
Wollongong 14/15 6.13%, 15/16 6.23%, 16/17 6.24% 19.78%
Shellharbour 13/14 8-10% for 4 years 41.15%
Shoalhaven 17/18 13.2% Application for a further 3
years at 5% currently being prepared
31%
Wingecarribee 16/17 8.55%, 17/18 9.25%, 18/19
9.25%, 19/20 12.15
45.3%
Kiama (proposed) 18/19 6%, 19/20 6%, 20/21 6% 19.1%
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Residential Comparison
Residential Rate Comparison - Neighbouring Council's
Council Value
2017/2018
Rates
2018/2019
Rates
2019/2020
Rates
2020/2021
Rates
Wingecarribee Shire Council * $418,274 $1,614.08 $1,763.38 $1,977.63 $2,027.07
Wollongong City Council $418,274 $1,765.16 $1,809.29 $1,854.52 $1,900.89
Shellharbour City Council $418,274 $1,844.49 $1,890.60 $1,937.87 $1,986.31
Shoalhaven City Council ** $418,274 $1,486.99 $1,561.33 $1,639.40 $1,721.37
Kiama Council $418,274 $1,412.65 $1,497.41 $1,587.26 $1,682.49
* Wingecarribee Shire Council includes SRV increases of 2017/18 - 9.25%, 2018/19 - 9.25%, 2019/20 - 12.15%, 2020/21 - 2.5%
** Shoalhaven City Council are applying for an SRV increase of 5% for three years and is included in this table
Applying surrounding Councils approved rating factors to Kiama Council’s average residential land value of $418,274, Kiama’s estimated residential rates are the lowest, until 2020/21 when by a margin of $42.11 we become the second lowest in the region.
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Business/Commercial/Industrial Comparison
Business/Commercial/Industrial Rate Comparison - Neighbouring Council's
Council Value
2017/2018
Rates
2018/2019
Rates
2019/2020
Rates
2020/2021
Rates
Wingecarribee Shire Council * $429,798 $3,371.28 $3,683.12 $4,130.62 $4,233.89
Wollongong City Council $429,798 $6,526.22 $6,689.38 $6,856.61 $7,028.03
Shellharbour City Council $429,798 $4,662.24 $4,778.80 $4,898.27 $5,020.72
Shoalhaven City Council ** $429,798 $3,439.34 $3,611.31 $3,791.87 $3,981.47
Kiama Council $429,798 $2,147.24 $2,276.07 $2,412.64 $2,557.40
* Wingecarribee Shire Council includes SRV increases of 2017/18 - 9.25%, 2018/19 - 9.25%, 2019/20 - 12.15%, 2020/21 - 2.5%
** Shoalhaven City Council are applying for an SRV increase of 5% for three years and is included in this table
Applying surrounding Councils approved rating factors to Kiama Council’s averageBusiness/Commercial/Industrial land value of $429,798, Kiama’s estimated Business/Commercial/Industrial rates are substantially the lowest in the region.
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Rate Type Average Land Value
% of Assessments under Average
Year Rate Peg impact/ week
SRV Impact/ week
Combined Impact/ week
Residential
$418,274
63%
2018/2019 $0.68 $0.95 $1.63
2019/2020 $1.38 $1.98 $3.36
2020/2021 $2.09 $3.10 $5.19
Rural Residential
$1,056,740
61%
2018/2019 $1.31 $1.83 $3.14
2019/2020 $2.65 $3.82 $6.47
2020/2021 $4.02 $5.97 $9.99
Business Commercial Industrial
$429,798
91%
2018/2019 $1.03 $1.44 $2.47
2019/2020 $2.09 $3.01 $5.10
2020/2021 $3.17 $4.71 $7.88
Business Ordinary
$268,512
78%
2018/2019 $0.44 $0.62 $1.06
2019/2020 $0.90 $1.30 $2.20
2020/2021 $1.37 $2.03 $3.40
Farmland
$1,394,638
55%
2018/2019 $1.17 $1.64 $2.81
2019/2020 $2.38 $3.43 $5.81
2020/2021 $3.61 $5.36 $8.98
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$1,500.00
$1,700.00
$1,900.00
$2,100.00
$2,300.00
$2,500.00
$2,700.00
$2,900.00
Kiama Council Shellharbour City Council Shoalhaven City Council Wollongong City Council Wingecarribee Shire Council
Average Rates per Assessment 2017
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How is the impact on pensioners going to be minimized?
As part of the SRV proposal, in order to help reduce the impact on pensioners, there will be an additional pensioner rebate provided fully funded by Council from the SRV. This additional pensioner rebate will incrementally increase over the 3 years and be capped after 2020/2021.
The additional annual pensioner rebate proposed is as follows;
2018/2019 $10.00
2019/2020 $17.00
2020/2021 $25.00
The additional pensioner rebate of $25 will be retained permanently after 2020/2021.
Pensioner Rebate
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Additional Impact Minimisation
In addition to providing an additional pensioner rebate,
Council is also able to reduce some of the impact of the
SRV through limiting increases in Domestic Waste
Management Charges (DWM). Costs in DWM have
increased on average by 5% per year.
With the strong support of the community in relation to the
Organics initiative and business improvements in the
waste area, which has resulted in efficiencies Council is
now in a position to limit the increases in DWM to 2.5%
per annum over the period of the proposed SRV.
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Are there alternatives to an SRV?
After an extensive review over the past two years, Council
believe a SRV is the only option to continue and maintain
the excellent levels of infrastructure, assets and ongoing
maintenance of these, in the community. The SRV
provides ongoing additional funding, which is necessary to
meet ongoing asset renewal and maintenance.
Council, as part of its Long Term Financial Plan, has set an
efficiency target of 2.5% per annum to reduce costs and
improve efficiencies. Council has been, is currently and will
continue to undertake an extensive service review program
to streamline processes and maintain or enhance service
delivery.
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Council has worked hard to realise this efficiency
target and successfully achieved this in 2016/2017
financial year and is on target to again achieve this in
the current financial year. Improvements in
procurement, streamlining of processes and review of
service delivery models have all contributed to the
achievement of this target.
Council has also examined other sources of income,
such as increasing user pay fees. However, fees for
services and access to facilities are limited by market
demand and affordability. Council also continues to
look at further ways to increase other sources of
revenue, including land development, to minimize our
reliance on rating income.
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$1,000.00
$1,100.00
$1,200.00
$1,300.00
$1,400.00
$1,500.00
$1,600.00
$1,700.00
$1,800.00
$1,900.00
2017 2018 2019 2020 2021 2022 2023
Rate Peg 2.5% Increase
SRV 6% increase
Residential Average Yearly Rates
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$20.00
$22.00
$24.00
$26.00
$28.00
$30.00
$32.00
$34.00
$36.00
2017 2018 2019 2020 2021 2022 2023
Rate Peg 2.5% Increase
SRV 6% increase
Residential Average Weekly Rates
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$1,600.00
$1,800.00
$2,000.00
$2,200.00
$2,400.00
$2,600.00
$2,800.00
2017 2018 2019 2020 2021 2022 2023
Rate Peg 2.5% Increase
SRV 6% increase
Business/Commercial/Industrial Average Yearly Rates
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$30
$35
$40
$45
$50
$55
2017 2018 2019 2020 2021 2022 2023
Rate Peg 2.5% Increase
SRV 6% increase
Business/Commercial/Industrial Average Weekly Rates
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Questions
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Kiama Municipal Council
11 Manning Street, Kiama NSW 2533
Phone: (02) 4232 0444
Email: [email protected]
Web: www.kiama.nsw.gov.au
Kiama Municipal Council @kiamacouncil