Rating Structure
The total income that can be raised from levying rates on property is capped by the State Government via the Independent Pricing and Regulatory Tribunal (IPART). IPART have determined that Warringah Council may increase general income from rates by a maximum of 3.0% in 2015/16. The increase consists of the 2.4% allowed to all NSW councils plus 0.6% for Council to maintain current service levels and financial sustainability.
The current rate structure will be maintained, rate assessments will be based entirely upon property valuations (ad valorem) but with minimum rates applying where appropriate.
For rating purposes, land in Warringah is categorised as residential or business. The business category has a further two sub-categories – Warringah Mall Regional Shopping Centre Sub-Category and Strata Storage Units Sub-category. Properties covered by the Warringah Mall Regional Shopping Centre Sub-Category are shown in this map:
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The ad valorem rate, the minimum rate and anticipated revenue for residential, business and business subcategories are as follows:
Council's Rating Structure 2015/16 - based on creating a strata storage sub-category
|
Rate Type
|
Category
|
Ad Valorem
|
Minimum Rate
|
Yield
|
| Ordinary |
Residential |
0.213201
|
$842.29
|
$63,535,666.22
|
| Ordinary |
Business |
0.590714
|
$1,081.39
|
$14,453,590.07
|
| Ordinary |
Business - Warringah Mall |
1.043502 |
N/A |
$706,450.85 |
| Ordinary |
Business - Strata Storage Units |
0.590714
|
$496.00
|
$81,693.41
|
| |
|
|
|
$78,777,400.55
|
Domestic waste management service (DWMS)
The domestic waste management service is provided on a full cost recovery basis. The charge is based on residents’ choice of either an 80 litre or a 120 litre garbage bin. Households requiring a bigger bin for general waste are charged extra.
The charges for 2015/16 are as follows:
|
Charge/Fee DWMS
|
2015/16
|
Revenue
|
| Availability Charges - Vacant Land |
$89.00 |
$41,474
|
| Per 80 litre garbage bin (first or additional garbage bins) - includes availability charge |
$364.00 |
$12,919,452
|
| Per 120 litre garbage bin (first or additional garbage bins) - includes availability charge |
$543.00 |
$11,368,791 |
| Service Increase Fee - applies when delivering a larger capacity or additional bin, compared to base 80 litre service or existing service level |
$25.00 |
|
| Supply of additional vegetation bin |
$98.00 |
$35,770 |
| Repair of vegetation bin lid |
$16.00* |
|
| Repair of vegetation bin wheels |
$9.50* |
|
| Total Yield |
|
$24,365,487
|
* Includes GST in the rate
The domestic waste management charge increase reflects the cost of the service as well as providing future funds for new residential bins and the additional cost of disposing waste when the Kimbriki waste processing plant is implemented.
Pensioner Subsidy
Pensioners who hold a Pensioner Concession Card and own and occupy rateable property in Warringah receive a mandatory rebate on rates and domestic waste management up to a maximum of $250. The rebate for rates totals $1,353,000 and for domestic waste management totals $533,000. The State Government funds 55% of the total mandatory rebate.
We also grant an additional voluntary rebate of $44 for waste management for eligible pensioners and $150 on rates to eligible pensioners under accepted male retirement age, and certain classes of pensioners who have reached the accepted male retirement age. The voluntary rebate for rates totals $130,000 and for domestic waste management totals $338,000.
Interest Charges
Interest charges on unpaid rates and charges will accrue on a daily basis at the rate of 8.5% per annum as set by the Office of Local Government in accordance with Section 566 of the Local Government Act 1993.
Hardship
Council acknowledges that ratepayers will, for various reasons from time to time, fail to pay rates when they become due and payable to Council. It is not the intention to cause hardship to any ratepayer through Council’s recovery procedures and consideration will be given to acceptable arrangements. To find out more view Council’s
Rates and Annual Charges Recovery and Hardship Policy.
Schedule of Fees and Charges
The Schedule of
Fees and Charges 2015/16 is published separately. Fees and charges relate mainly to the recovery of service delivery costs through charging fees to users. These include use of leisure, entertainment and other community facilities and the provision of human services such as long day care, vacation care and family day care. In setting the budget, the key principle for determining the level of user charges has been to ensure that increases relate directly to the costs incurred in providing the service.
Underlying these is Council’s
Pricing Policy in relation to fees and charges. The Policy seeks to ensure Council recovers its costs in delivering a service, while also allowing for fees and charges to be discounted where appropriate in recognition of Council’s community service obligations.
Works on Private Land
We may carry out work on private land, either on request or agreement with the owner of the land, or under relevant legislation. The amount or rate to be charged will be the appropriate commercial rate – the actual cost of the works and standard oncosts to provide full cost recovery plus a return to Council.
Borrowings
Council has commenced construction of the renewal of access roads at the Kimbriki Waste Landfill site. It is anticipated that the renewal of the access roads will cost $12.5m. Council is planning to borrow $7.815m for the Local Infrastructure Renewal Scheme (LIRS) component of the project and is proposing to borrow for the remaining component of the works in 2015/16 in order to maintain financial sustainability over the 10 years of the Long Term Financial Plan. If Council has not completed the borrowings for the LIRS component of the project in 2014/15 then borrowings of $12.5m will be undertaken in 2015/16.
Council will continue to review the need to borrow for major infrastructure projects. Spreading these costs over a number of years facilitates inter-generational equity and smooths out long term expenditure peaks and troughs.
Section 611 Charges
We have adopted charges in relation to Section 611 of the Local Government Act, 1993. Council has previously resolved as follows:
‘THAT pursuant to Sections 502 and 608-611, and subject to the right of the Council during such year to amend or vary such fees or resolve to charge and recover any additional fee following public notification for 28 days of such proposal:
An annual charge under Section 611 of the Local Government Act be and is hereby adopted, made and levied on the person for the time being in possession, occupation or enjoyment of a rail, pipe, wire, pole, cable, tunnel or structure laid, erected, suspended, constructed or placed on, under or over a public place.’